C A R L S B E R G G R O U P
A N N U A L R E P O R T
2 0 2 3
MANAGEMENT
REVIEW
FINANCIAL
STATEMENTS
TO OUR SHAREHOLDERS
Letter from the Chair & the CEO ......... 3
Meet our CEO and our CFO ................... 5
CONSOLIDATED FINANCIAL STATEMENTS
Statements ...........................................59
Notes ......................................................63
CARLSBERG GROUP ANNUAL REPORT 2023 TO OUR SHAREHOLDERS
2
2023 AT A GLANCE
Highlights of the year ............................... 7
Our performance ........................................ 9
Capital allocation .................................... 10
Our regions ................................................ 11
Our brand portfolio ................................. 14
5-year summary ..................................... 16
CREATING VALUE
Our purpose ............................................... 17
Our business model ................................ 18
Our strategy .............................................. 19
Our ESG programme ............................. 24
Addressing climate risks ....................... 28
2023 REVIEW AND 2024 EXPECTATIONS
Group ........................................................... 30
Western Europe ....................................... 34
Asia ............................................................... 36
Central & Eastern Europe .................... 38
Russia ........................................................... 40
2024 earnings expectations ................ 41
GOVERNANCE
Corporate governance ........................... 42
Risk management ................................... 48
Supervisory Board................................... 51
Executive Committee ............................. 54
Share information ................................... 56
Forward-looking statements and
ESEF ............................................................. 57
PARENT COMPANY FINANCIAL
STATEMENTS
Statements ........................................ 133
Notes ................................................... 136
REPORTS
Management statement ................ 143
Auditor’s reports .............................. 144
ANNUAL REPORT
Our Annual Report is our detailed
annual disclosure relating to
company performance, strategy,
corporate governance and
financial results.
ENVIRONMENTAL, SOCIAL &
GOVERNANCE REPORT
Our Environmental, Social &
Governance (ESG) Report
provides detailed information and
data on sustainability and our
responsible business behaviour.
OUR ANNUAL REPORTING SUITE
Our annual reporting suite comprises our Annual
Report, our Environmental, Social & Governance
(ESG) Report, our Human Rights Report and our
Remuneration Report. Each includes content
tailored to its specific audience, and cross-
references to the other reports where relevant.
The reports are available online at
www.carlsberggroup.com/investor-
relations/investor-home/reports-downloads/
REMUNERATION REPORT
Our Remuneration Report
includes full disclosure of
Supervisory Board and Executive
Management remuneration.
HUMAN RIGHTS REPORT
Our Human Rights Report
provides detailed information on
our due diligence approach and
our actions to uphold human
rights throughout our value chain.
To our shareholders
To our shareholders
LETTER FROM THE CHAIR & THE CEO
EMBARKING ON
OUR GROWTH JOURNEY
CARLSBERG GROUP ANNUAL REPORT 2023 TO OUR SHAREHOLDERS
3
We delivered solid results
in a year impacted by a
challenging trading
environment across our
regions.
Organic revenue growth was 9.2%,
driven by a strong 10% revenue/hl
improvement. Operating profit grew
organically by 5.2% despite our cost
base being subject to continued
inflation throughout the year and
increased commercial investments.
The reported operating profit of DKK
11.1bn was impacted by the
strengthening of the DKK against a
number of key currencies, resulting in
reported development of -3.2%. Free
operating cash flow was DKK 7.5bn
and ROIC was 14.5%.
Despite the weakening consumer
sentiment in Europe and Asia during
the year, and bad weather in many
markets during the important
summer months, we were able to
upgrade our earnings expectations
twice – in May and August.
Thanks to the strong financial health
of the Group, we were also able to
step up our commercial investments
in the latter part of the year in
support of our long-term growth
opportunities.
The Group’s financial results are
presented in full on pages 30-33.
SHAREHOLDER RETURNS
Our capital allocation principles are
unchanged (see page 10). We will
remain disciplined in our allocation
decisions to ensure the right balance
between continued short-term
delivery and building the right long-
term profitable growth profile of the
business.
Our leverage of 1.47x was well
under our target of below 2x, and as
a result of the solid business
performance and financial position
the Group continued its share buy-
back programme. During the year,
we bought back shares amounting to
DKK 3.2bn.
In addition, in March we paid a total
dividend of DKK 3.7bn, equivalent to
48% of adjusted net profit from
continuing operations in 2022.
At the Annual General Meeting in
March 2024, the Supervisory Board
will recommend a dividend of DKK
27.0 per share for 2023. The
dividend per share is unchanged
compared with 2022 and equals a
payout ratio of 49% of adjusted net
profit for continuing operations.
UKRAINE AND RUSSIA
The war in Ukraine continued to
impact our business. The health and
safety of our Ukrainian colleagues
remain our first priority. We are
deeply saddened by the continued
hardship and challenges endured by
CARLSBERG GROUP ANNUAL REPORT 2023 TO OUR SHAREHOLDERS
4
We greatly appreciate the continued
support and trust shown to us by our
shareholders. We also extend our
thanks to all suppliers and customers
for their cooperation during 2023,
and express our gratitude to our
consumers around the world.
HENRIK
POULSEN
Chair
JACOB
AARUP-ANDERSEN
Group CEO
our people and the population in
Ukraine.
Because of the war, we announced
the sale of Baltika Breweries – our
Russian business – in June. Shortly
afterwards, a presidential decree
temporarily transferred the
management of the business to a
Russian federal agency. This step by
the Russian authorities had several
implications, including the full
impairment of the Russian business
in the Carlsberg Group’s accounts.
Read more on page 40.
CHANGING OF THE GUARDS
2023 saw a changing of the guards.
After eight years at the helm of the
Carlsberg Group, Cees ’t Hart retired
at the end of August. Cees leaves
behind an impressive legacy, having
delivered outstanding results during
his tenure.
We want to thank Cees for his
significant contribution to Carlsberg,
and to wish him all the best for the
next chapter of his life.
Jacob Aarup-Andersen joined
Carlsberg as new CEO in September,
and Ulrica Fearn joined the Group as
new CFO in January 2023. The
Supervisory Board is convinced that
we have the right team on board for
the next stage of Carlsberg’s value-
creating growth journey.
ACCELERATE SAIL
Our strategy, SAIL’27, was developed
by a broad group of leaders and
colleagues from across the Group in
late 2021 and early 2022 – before
the war in Ukraine and subsequently
high inflation. Because of these
significant events, in addition to
COVID-19, our focus in the past few
years has been on managing these
shorter-term challenges.
With the impact from these major
disruptions decreasing, it is now time
to sharpen the longer-term focus on,
and ensure sufficient investments in,
our future growth. Consequently, the
Executive Committee and extended
leadership team conducted a review
of the SAIL’27 priorities in late 2023
and early 2024, leading to the
refreshed Accelerate SAIL strategy.
We have increased our ambition for
top-line growth to 4-6% (previously
3-5%) to be achieved by accelerating
support for the most important
strategic growth levers, including our
premium beer brands, Beyond Beer
products and specific geographies.
We will also further strengthen our
capabilities, including digital, to build
an even more efficient, competitive
and scalable company.
Read more about Accelerate SAIL on
pages 19-20.
CONTINUED COMMITMENT TO
DOING BETTER
Our ESG programme, Together
Towards ZERO and Beyond (TTZAB),
is an integral part of Accelerate SAIL.
TTZAB focuses on 11 areas, which
were identified through an
assessment of the most material
environmental, social and governance
(ESG) topics for our business. This
year, we reconfirmed the relevance
of these topics through our first
double materiality assessment.
As part of TTZAB, we have ambitious
targets and commitments. These
enable us to tackle global social and
environmental challenges while
supporting our licence to operate and
our ability to brew better beers now
and in the future. We recognise that
the hardest work is ahead of us, and
we will need to challenge ourselves
to be able to succeed in our TTZAB
ambitions.
In September, we published the
results of the 2022 assessment of
our full value chain emissions,
confirming that we have achieved a
16% reduction in the relative value
chain emissions per hectolitre of beer
produced compared with 2015.
Read more about our ESG
programme and how we will achieve
our targets on pages 24-27, and in
detail in the ESG Report.
OUR PEOPLE
We are a purpose- and value-driven
organisation where respect,
responsibility, integrity and caring
about each other lead the way, and
where we win as a team.
We believe that the foundation for
sustained success rests upon fostering
a high organisational heartbeat and a
strong organisational culture that
integrates diversity, equity &
inclusion (DE&I).
We are committed to nurturing our
inclusive culture, to treating our
people with fairness, honesty and
kindness, and to making Carlsberg a
workplace where everyone belongs
and can be at their best.
In 2023 – one year ahead of schedule
– we reached our target of 30%
women in senior leadership roles. We
will continue to drive the DE&I
agenda and encourage you to read
more about it in our ESG Report.
THANK YOU
This past year, we were again
impressed by the high level of
engagement and commitment from
the Group’s employees, and we
would like to say thank you to each
and every one of them. In particular,
we want to acknowledge our long-
suffering colleagues in Ukraine.
CARLSBERG GROUP ANNUAL REPORT 2023 TO OUR SHAREHOLDERS
5
MEET OUR CEO AND OUR CFO
A TALK WITH OUR
CEO AND OUR CFO
Our new CEO and CFO share
their first impressions of
Carlsberg and their ideas for
the future.
Please share your initial views of
Carlsberg after joining the Group.
Jacob: “First of all, my excitement
about this great company has only
grown since I started on 1 September.
Carlsberg has a unique heritage and
purpose, and an amazing legacy
from its founders. Combining that
with our great brands, our
geographical footprint, our highly
talented people and our strong
culture means we have excellent
opportunities to continue to create
value in the coming years.”
Ulrica: “I already knew I was joining
a great company when I started in
January 2023. I can say that
Carlsberg’s purpose is not just words
on paper, but really a living part of
everyday life. It’s a company with
high ethical values and high
standards in how we do business.”
What has impressed you the most?
Jacob: “Being highly familiar with
Carlsberg from the outside, it’s been
the strong culture and passionate
colleagues across the Group, who are
committed to excellence and proud of
the company, the brands and the
broader value we create in our
communities. I’m also impressed with
how the Funding the Journey
mentality is embedded across the
Group.”
Ulrica: “I’m really impressed with the
outcome and performance
orientation that we have in the
Group, and this is something that
we’ll continue and further develop.”
What do you enjoy the most?
Jacob: “I enjoy being part of the
team who will unlock the many
opportunities in this business and
deliver appealing growth rates for
many years to come.”
Ulrica: “That’s an easy one. I truly
enjoy working with all my talented,
passionate and dedicated colleagues
across the Group. And then I’m
excited to be back in the branded
beverage category.”
What can Carlsberg do better?
Jacob: “It’s fair to say that the past
few years have been extraordinary
and challenging, calling for a short-
term focus. Fortunately, we can now
take on a more longer-term focus to
realise the growth potential of our
categories, brands and geographies,
while continuing the short-term
delivery.”
Ulrica: “We have a very strong
foundation. But it’s inherent in the
nature of business that there are
always things that can be done
better and areas to improve. One
area is our ways of working and
processes, which can be streamlined
and made less complicated, freeing
up time and resources for value-
adding activities. We can also do
better on data and analytics, and
leverage this commercially and in the
back-end.”
CARLSBERG GROUP ANNUAL REPORT 2023 TO OUR SHAREHOLDERS
6
WELCOMING JACOB TO THE
CARLSBERG GROUP
After joining Carlsberg, Jacob
Aarup-Andersen began an intense
and fast-paced onboarding, deep-
diving into all major areas of the
business, travelling to many markets,
visiting breweries, and spending time
with customers and consumers in the
off-trade and on-trade, and with
key people across the organisation.
EMBRACING OUR PURPOSE AND
STRATEGY…
Being highly familiar with Carlsberg’s
unique history and purpose, Jacob
obtained a thorough understanding
of SAIL’27 by engaging with
managers and colleagues across
markets and functions.
… MEETING OUR REGIONS…
Jacob met with staff in regions and
markets, getting insights into the
fundamentals of the regions and
markets in terms of market dynamics
and outlook, competitive landscape,
segments and brands, financials, and
risks and opportunities.
… UNDERSTANDING KEY
FUNCTIONS…
Our people are key to Carlsberg’s
success, and an introduction to
Carlsberg’s HR agenda was an
important topic in addition to getting
acquainted with the commercial
organisation, IT, the supply chain
and the Carlsberg Research
Laboratory, where ground-breaking
research has taken place since its
foundation in 1875.
… ENDORSING TOGETHER
TOWARDS ZERO & BEYOND…
Being an important priority in
SAIL’27, Jacob fully endorses our
ESG programme, Together Towards
ZERO and Beyond, including the
ambitious targets for our focus areas
(read more on pages 24-25 and in
the ESG Report).
… AND FAMILIARISING HIMSELF
WITH THE ART OF BREWING
We take great pride in brewing high-
quality beers, and obviously an
important element of Jacob’s
onboarding was a thorough
introduction to the art of brewing.
HIGHLIGHTS OF THE YEAR
KEY EVENTS
DURING 2023
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
7
JANUARY
MARCH
JUNE
ULRICA FEARN
JOINS CARLSBERG
On 1 January, Ulrica
Fearn joined Carlsberg
as Chief Financial Officer
and member of the
Executive Board. Find
out more about Ulrica
on pages 5 and 54.
ACQUISITION OF
WATERLOO BREWING
The Group acquired Waterloo Brewing in
Canada, strengthening our local business,
reducing logistics costs and improving our
growth prospects in the market.
SIGNING THE
UN WOMEN’S
EMPOWERMENT
PRINCIPLES
The Carlsberg Group signed the guiding
principles on women’s empowerment
and gender equity, further cementing
the company’s diversity, equity &
inclusion (DE&I) commitment.
Read more about our DE&I work
and targets in the ESG Report.
KRONENBOURG
1664 IN THE UK
We terminated the licensee agreement
in the UK for the Kronenbourg 1664
brand. Bringing this iconic beer brand
home to Carlsberg Marston’s Brewing
Company is a great complement to
our local portfolio and will support
our Accelerate SAIL ambition of
strengthening and growing our
premium portfolio.
REFRESHED
VISUAL IDENTITY
We unveiled a refreshed brand
identity for the 1664 portfolio, elevating
the brand image and building on its
global success. Still undeniably French,
the refreshed brand identity is designed to
feel modern, be easily recognisable and
continue to build premium perceptions.
Read more on page 21.
BROOKLYN PILSNER
AND GLASTONBURY
FESTIVAL
Brooklyn Pilsner was the official beer
of the Glastonbury Festival, the largest
greenfield music and performing arts event
in the world. Bars across the expansive site
served the ultimate summer refreshment
thanks to the beer’s crisp, bright and
refreshing taste. Read more about
Brooklyn on page 21.
MARCH
JUNE
JUNE
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
8
JUNE
JUNE
JUNE/JULY
AUGUST
INVESTING
IN UKRAINE
In 2023, Carlsberg invested around
EUR 40m in Ukraine, including in
a new production line at the Kiev
brewery, increasing can capacity
by 80%. The investment is
testament to Carlsberg’s ongoing
commitment to the business in
Ukraine. Read about the results in
Ukraine on page 38.
THE RUSSIAN
BUSINESS
On 23 June, Carlsberg announced
that it had signed an agreement
to sell the Russian business. On 16
July, the Russian government issued
a presidential decree, temporarily
transferring the management of
our Russian business to the Russian
Federal Agency for State Property
Management. Read more on page 40.
FAREWELL TO
CEES ’T HART
We said farewell to Cees ’t Hart,
our CEO since June 2015. We
pay tribute to his remarkable
achievements at Carlsberg and
the invaluable steps he took
to drive Carlsberg’s progress.
Total annual cash returns to
shareholders in 2022 were 4.6
times higher than in 2015.
WELCOMING JACOB
AARUP-ANDERSEN
On 1 September, we welcomed
Jacob Aarup-Andersen as the new
CEO of the Carlsberg Group. Jacob
has a strong strategic mindset and
global operational experience, and
is an engaging and purpose-led
leader. Meet Jacob on pages 5-6
and 54.
CO2 REDUCTIONS
AHEAD OF TARGET
We announced the result of the
updated assessment of our full
value chain carbon emissions,
showing better-than-targeted
performance. Our actual delivery
was a 16% reduction, ahead of the
target of 15% reduction versus 2015.
Read more on page 26.
HOME OF
CARLSBERG
We opened the doors to Home
of Carlsberg, our new visitor
centre. The 3,000 m² exhibition is
located right where it all began,
and includes a restaurant and bar,
our brewery horses, architectural
buildings, beer tastings, old cellars
and – probably – the world’s
largest bottle collection.
SEPTEMBER
SEPTEMBER
DECEMBER
OUR PERFORMANCE
A SOLID SET
OF RESULTS
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
9
FINANCIAL DELIVERY
NON-FINANCIAL DELIVERY
REVENUE
+9.2%
ORGANIC
GROWTH
OPERATING PROFIT
+5.2%
ORGANIC
GROWTH
PREMIUM BEER
+1%
VOLUME
GROWTH
2
0
2
3
¹
2
0
2
2
¹
DKK 73.6bn
DKK 70.3bn
2
0
2
3
¹
2
0
2
2
¹
DKK 11.1bn
DKK 11.5bn
2
0
2
3
2
0
2
2
2 Share of total volume.
ADJUSTED EPS, CONTINUING OPERATIONS
RETURN ON INVESTED CAPITAL (ROIC)
ZERO CARBON FOOTPRINT
2
0
2
3
2
0
2
2
DKK 54.6
DKK 55.7
2
0
2
3
2
0
2
2
14.5%
15.2%
38.3%
41.6%
2
0
2
3
2
0
2
2
ROIC excl. goodwill
ROIC
NET INTEREST-BEARING DEBT/EBITDA
CASH RETURNS TO SHAREHOLDERS
ZERO WATER WASTE
2
0
2
3
2
0
2
2
1 Reported figures.
1.47x
1.23x
2
0
2
3
2
0
2
2
DKK 3.7bn
DKK 3.2bn
DKK 3.4bn
DKK 4.4bn
2
0
2
3
2
0
2
2
Dividends
Share buy-back
20%²
19%²
2.8 kg CO e/hl
²
3.0 kg CO e/hl
²
2.5 hl/hl
2.5 hl/hl
Read more about our financial results
on pages 30-39 and in the ESG Report.
CAPITAL ALLOCATION
PRINCIPLES
MAINTAINED
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
10
We delivered well against our capital allocation principles. We
maintain our commitment to these principles and will ensure the
right balance of investing in compounding, profitable, long-term
growth and delivering continued cash returns to our shareholders.
1
2
3
4
5
INVESTING IN
OUR BUSINESS TO
DRIVE LONG-TERM
SUSTAINABLE
GROWTH
TARGETING
NIBD/EBITDA
OF BELOW
2.0X.
TARGETING
AN ADJUSTED
PAYOUT RATIO
OF AROUND
50%
DISTRIBUTING
EXCESS CASH TO
SHAREHOLDERS
THROUGH SHARE
BUY-BACKS
VALUE-
ENHANCING
M&A
+10%
We continued to invest in our
business in support of our SAIL’27
priorities. In Q4, we accelerated
our commercial investments in
support of our growth categories,
including premium beer, Beyond
Beer and growth in Asia. For the
year, marketing investments grew
organically by 10%.
We will continue to ensure
sufficient support of and
investments in our brands,
markets and capabilities to drive
sustainable, compounding growth.
1.47x
The net interest-bearing debt
to EBITDA ratio remained
conservative at 1.47x.
This was well below our target of
below 2.0x
49% 3.2bn
2023
At the Annual General Meeting
on 11 March 2024, the Supervisory
Board will propose a dividend per
share of DKK 27, or a total of DKK
3.6bn. This equals a payout ratio
of 49% of adjusted net profit for
continuing operations.
We completed the acquisition of
Waterloo Brewing Ltd. in Canada.
In the UK, Carlsberg Marston’s
Brewing Company took over
the Kronenbourg 1664 brand,
terminating a licensee agreement.
In 2023, we bought back 3,338,514
shares at an average price of DKK
958, equal to a total purchase price
of DKK 3.2bn.
At the Annual General Meeting
on 11 March 2024, the Supervisory
Board will recommend that 3.1m
treasury shares not used for
hedging of incentive programmes
be cancelled, equalling a decrease
of 2.3% in the total number of
shares.
OUR REGIONS
WESTERN
EUROPE
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
11
While volumes in Western Europe were impacted by bad
weather in many markets during the peak season and soft
consumer sentiment, revenue/hl growth was strong, supporting
organic revenue and operating profit growth.
VOLUME BY MARKET
REGIONAL RESULTS
France, Switzerland
Nordics
VOLUME1
REVENUE1
OPERATING PROFIT1
20%
40%
-2.3% +8.9% +3.3%
2
0
2
3
²
2
0
2
2
²
43.4m hl
44.4m hl
2
0
2
3
²
2
0
2
2
²
DKK 37.3bn
DKK 34.9bn
2
0
2
3
²
2
0
2
2
²
1 Organic growth. 2 Reported figures.
DKK 5.0bn
DKK 5.0bn
UK, Poland,
Germany
40%
SHARE OF REGIONS
35%
50%
40%
VOLUME
REVENUE
OPERATING
PROFIT
ASIA
The Asia region delivered another set of solid results despite
an increasingly challenging macroeconomic environment.
Volume growth was supported by good progress in markets
such as China, Vietnam and India. We increased our commercial
investments to drive long-term growth.
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
12
VOLUME BY MARKET
REGIONAL RESULTS
Malaysia, Singapore
India, Vietnam
17%
3%
China, Hong Kong SAR
VOLUME1
REVENUE1
OPERATING PROFIT1
+3.7% +8.4% +7.9%
Cambodia,
Laos
20%
60%
2
0
2
3
²
2
0
2
2
²
50.0m hl
48.3m hl
2
0
2
3
²
2
0
2
2
²
DKK 23.3bn
DKK 23.7bn
2
0
2
3
²
2
0
2
2
²
1 Organic growth. 2 Reported figures.
DKK 5.2bn
DKK 5.4bn
SHARE OF REGIONS
40%
32%
42%
VOLUME
REVENUE
OPERATING
PROFIT
CENTRAL & EASTERN
EUROPE
Results in Central & Eastern Europe were impacted by
weak consumer sentiment in many markets and adverse
weather during the peak season. Revenue/hl grew strongly
thanks to price increases and a positive mix from premium
and alcohol-free brews.
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
13
VOLUME BY MARKET
REGIONAL RESULTS1
Baltics
Export & License, Canada
VOLUME2
REVENUE2
OPERATING PROFIT2
7%
Balkan markets,
Italy, Greece
24%
38%
Kazakhstan,
Belarus, Azerbaijan
15%
16%
Ukraine
-4.0% +11.9% +4.1%
2
0
2
3
³
2
0
2
2
³
31.7m hl
32.7m hl
2
0
2
3
³
2
0
2
2
³
DKK 13.0bn
DKK 11.7bn
2
0
2
3
³
2
0
2
2
³
DKK 2.2bn
DKK 2.3bn
1 Continuing operations. 2 Organic growth. 3 Reported figures.
SHARE OF REGIONS
25%
18%
18%
VOLUME
REVENUE
OPERATING
PROFIT
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
14
OUR BRAND PORTFOLIO
OUR BEER
PORTFOLIO
PREMIUM
BEER
SHARE OF
TOTAL VOLUMES
VOLUME
GROWTH
20%
+1%
MAINSTREAM
CORE BEER
SHARE OF
TOTAL VOLUMES
58%
3%
volume
growth
3%
volume
growth
0%
volume
growth
34%
volume
growth
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
15
APPEALING BRANDS
IN AFB AND BEYOND BEER
ALCOHOL-FREE
BREWS (AFB)
SHARE OF
TOTAL VOLUMES
VOLUME
GROWTH
3% +3%
BEYOND
BEER
SOFT
DRINKS
6%
volume
decline
5-YEAR SUMMARY
KEY
FIGURES
Key figures and financial ratios in 2022-2023 are presented for continuing activities unless otherwise stated. 2021
figures have been restated accordingly.
2023
2022
2021
2020¹
2019¹
101.0
24.1
101.0
24.4
98.8
20.4
110.1
20.0
113.0
21.9
58,541
28,361
14,085
9,699
-247
-411
9,041
-2,233
6,808
-
65,902
32,638
15,007
10,465
501
-738
10,228
-2,751
7,477
-
6,808
7,477
73,585
32,832
15,179
11,105
-431
-844
9,830
70,265
32,067
15,657
11,470
-784
-725
9,961
-1,859
-1,778
7,971
8,183
-47,748
-8,075
-39,777
108
1,011
1,171
-40,788
-1,063
6,960
7,012
60,097
28,569
14,367
10,129
703
-385
10,447
-2,154
8,293
-284
8,009
1,163
6,846
8,293
Investments
Acquisition of property, plant and
equipment and intangible assets
Acquisition of property, plant and
equipment, including right-of-use assets
Acquisition and disposal of subsidiaries,
net
Financial ratios
Gross margin
EBITDA margin
Operating margin
Effective tax rate
Return on invested capital (ROIC)
ROIC excl. goodwill
NIBD/EBITDA
Stock market ratios
Earnings per share (EPS)
Earnings per share, continuing operations
778
6,030
6,808
908
6,569
7,477
EPS-A, continuing operations²
Free cash flow per share (FCFPS)
Dividend per share (proposed)
7,425
7,785
6,462
6,363
6,160
Payout ratio
Payout ratio, adjusted4
Share price (B shares)
Market capitalisation
[Text]
Volumes (million hl)
Beer
Other beverages
DKK million
Income statement
Revenue
Gross profit
EBITDA
Operating profit before special items
Special items, net
Financial items, net
Profit before tax
Income tax
Profit for the period, continuing operations
Loss from discontinued operations
Profit for the period
Attributable to
Non-controlling interests
Shareholders in Carlsberg A/S (net profit)
Shareholders in Carlsberg (net profit), continuing
operations
Shareholders in Carlsberg A/S (net profit), continuing
operations, adjusted²
Statement of financial position
Total assets
Invested capital
Invested capital excl. goodwill
Net interest-bearing debt (NIBD)³
Equity, shareholders in Carlsberg A/S
Statement of cash flows
Cash flow from operating activities
Cash flow from investing activities
Free cash flow
CARLSBERG GROUP ANNUAL REPORT 2023 2023 AT A GLANCE
16
2023
2022
2021
2020¹
2019¹
-4,243
-4,018
-3,907
-4,396
-4,596
-4,987
-4,616
-4,319
-3,823
-5,011
-822
-
-621
-2,409
-
%
%
%
%
%
%
x
DKK
DKK
DKK
DKK
DKK
%
%
44.6
20.6
15.1
18.9
14.5
38.3
1.47
-299.7
51.1
54.6
35.8
27.0
n.m.
49
45.6
22.3
16.3
17.9
15.2
41.6
1.23
-7.6
50.1
55.7
70.5
27.0
n.m.
48
47.5
23.9
16.9
20.6
12.5
33.6
1.37
47.6
49.6
44.9
61.5
24.0
51
49
48.4
24.1
16.6
24.7
8.9
23.2
1.51
41.3
41.3
43.6
34.5
22.0
55
50
49.5
22.8
15.9
26.9
8.8
22.4
1.25
43.7
43.7
41.0
65.9
21.0
49
50
DKK
846.8
923.2
1,129.5
975.2
993.8
DKKm
122,775
133,594
163,149
142,676
145,805
111,831
115,341
126,383
118,816
123,063
Number of issued shares at year-end
1,000
137,357
141,857
145,257
148,157
152,557
61,089
22,774
22,351
23,234
60,211
21,758
19,326
31,902
63,635
23,743
19,162
45,497
81,541
31,049
21,263
39,308
11,607
-6,729
4,878
12,949
-3,065
9,884
12,278
-4,067
8,211
10,928
-5,871
5,057
86,162
33,032
18,776
43,449
12,239
-2,277
9,962
Number of shares at year-end, excl.
treasury shares
Weighted average number of shares, excl.
treasury shares
1,000
1,000
134,114
137,341
141,892
145,102
147,996
136,089
139,835
143,848
146,104
150,411
¹ Comparative figures for 2019-2020 include result from the discontinued operation in Russia. 2 Adjusted for special
items after tax. 3 Comparative figures for 2021 have not been restated. 4 Proposed dividend on number of shares at
year-end as a percentage of net profit adjusted for special items after tax, and in 2022-2023 also adjusted for loss
from discontinued operation in Russia.
Please refer to section 9.2 General accounting policies in the consolidated financial statements for a definition and
calculation of key figures and ratios.
Creating value
OUR PURPOSE
BREWING FOR A BETTER
TODAY AND TOMORROW
We pursue perfection every
day. We strive to brew better
beers. Beers that stand at the
heart of moments that bring
people together. We do not
settle for immediate gain when
we can create a better
tomorrow for all of us.
Our purpose stated above is rooted in
our heritage and in the mentality of
our founders, who left a rich legacy
that still greatly influences how we
run our business today. Their
pioneering spirit, passion for brewing
and proactive contribution to society
are what make us who we are.
We are proud of our purpose of
“Brewing for a better today and
tomorrow”. Current and prospective
employees look for companies with a
clear purpose, a keen sense of social
responsibility, and work that has
meaning and gives them a sense of
belonging.
We live our purpose every day by
focusing on our brands and the art of
brewing, exciting our consumers with
quality brews that strengthen our
identity and pride as brewers, and by
continuously aiming to do better.
We will continue to live our purpose,
as it is key for the successful
execution of our strategy and for
achieving our ambition of being
successful, professional and
attractive in our markets:
Successful in ensuring the
financial health of our company
by outperforming our competitors
through improved market share,
revenue, margins and compounding
earnings growth.
Professional in ensuring the strategic
health of our company by delivering
the highest standards in everything
we do, including brands, brews and
service.
Attractive in ensuring the
organisational and societal health
of our company by being purpose-
led and performance-driven for
shareholders, employees and
society.
BEERS THAT
STAND AT THE
HEART OF
MOMENTS THAT
BRING PEOPLE
TOGETHER
WE PURSUE
PERFECTION
EVERY DAY
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
17
WE DO NOT SETTLE
FOR IMMEDIATE
GAIN, WHEN WE CAN
CREATE A BETTER
TOMORROW FOR ALL
OF US
WE STRIVE
TO BREW
BETTER BEERS
OUR BUSINESS MODEL
OUR BUSINESS MODEL
ROOTED IN OUR PURPOSE
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
18
WE FOCUS ON THE MARKETS
WHERE WE HAVE A NO. 1 OR 2
POSITION...
… WHERE WE DELIVER AN
ATTRACTIVE BEER PORTFOLIO FOR
ALL CONSUMER OCCASIONS...
… AND STRIVE TO EXCEL
IN OUR SERVICE TO ON- AND
OFF-TRADE CUSTOMERS...
... BY OPTIMISING OUR
SUPPLY CHAIN AND IMPROVING
PROCESSES AND SYSTEMS.
Core beer is a volume business, and strong
market positions are key drivers of profitability.
We have particular focus on the 21 markets in
Western Europe, Asia and Central & Eastern
Europe where we are no. 1 or 2.
The strength of our beer portfolio lies in the
strong local roots of our local power brands,
combined with our local and international
premium brands, alcohol-free brews and
brands Beyond Beer.
Our customers range from on-trade to off-
trade, from online to offline, and from small to
large. We aim to become their preferred beer
supplier, offering products and services that
deliver value growth for them and us.
We optimise systems and processes
to deliver the right data at the right time
in support of our growth agenda, and
optimise asset utilisation while brewing
high-quality beer.
BREWING FOR A BETTER
TODAY AND TOMORROW
In all our markets, we aim to lead in sustainability
because it is central to our purpose and because
we genuinely believe it is the right thing to do –
delivering tangible benefits for our business and
for society as a whole.
BREWING FOR A BETTER
TODAY AND TOMORROW
Our brands offer us powerful opportunities for
communicating with consumers. We use these
opportunities to encourage moderate, responsible
consumption of our products. We also increase
the availability of low- and alcohol-free brews.
BREWING FOR A BETTER
TODAY AND TOMORROW
We develop digital solutions and services to help
our customers grow their business. We engage in
developing sustainable packaging solutions and
launching initiatives to increase collection and
recycling rates.
BREWING FOR A BETTER
TODAY AND TOMORROW
Recognising the need for strong actions in
the face of complex sustainability challenges,
Together Towards ZERO and Beyond sets
ambitious targets for carbon, water, agricultural
raw materials, packaging, and health & safety.
OUR STRATEGY
ACCELERATE
SAIL
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
19
Launched in early February
2022, SAIL’27 remains our
strategic frame, but with
Accelerate SAIL we will
sharpen our focus on long-
term compounding growth.
The Group’s strategy, SAIL’27, was
developed by a broad group of
leaders and employees in late 2021
and early 2022 – before the war in
Ukraine and subsequent high
inflation. These significant events, in
addition to COVID-19, meant that the
focus in the past few years has been
on successfully navigating through
these shorter-term challenges.
With the impact from these major
disruptions decreasing, it is now time
to sharpen the longer-term focus on,
and ensure sufficient investments in,
our future growth. Consequently, the
Executive Committee and extended
leadership team conducted a review
of the SAIL’27 priorities in late 2023
and early 2024, leading to the
refreshed Accelerate SAIL strategy.
SAIL’27 set the strategic frame for
Carlsberg. Accelerate SAIL builds on
this foundation, setting higher growth
ambitions by increasing investments
in and support for selected growth
drivers within portfolio, geographies
and capabilities, improving supply
CREATING VALUE FOR ALL OUR
STAKEHOLDERS
SHAREHOLDERS
• Organic revenue growth of 4-6% CAGR.
• Organic operating profit growth above revenue
growth.
• Continued ROIC focus.
• Disciplined capital allocation.
• Ambitious sustainability targets.
EMPLOYEES
• A purpose-led and growth-driven company with
strong development opportunities and
engagement.
• An attractive, diverse and inclusive workplace.
• Strong brands, quality products and ambitious
sustainability efforts to be proud of.
SOCIETY
• Championing sustainability in our journey Together
Towards ZERO and Beyond.
• Enabling the Carlsberg Foundation to grant
funding to science, art and culture.
• Partnering with communities and contributing to
prosperity in the markets in which we operate.
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
20
chain efficiency, developing a growth
culture and continuing the well-
embedded cost focus.
The key elements of Accelerate SAIL
are explained in the following.
STEP UP PREMIUM GROWTH
The premium category remains
attractive across our markets, where
we see appealing growth and margin
opportunities. Premium accounts for
20% of the Group’s total volumes and
is a key revenue growth driver.
In recent years, our strong portfolio
of international and local premium
brands has outperformed our
mainstream portfolio despite the
significant external headwinds. By
increasing investments in marketing
and brand building and further
developing our execution capabilities,
we believe that we can accelerate
growth of our premium portfolio and
significantly increase the premium
exposure.
ACCELERATE BEYOND BEER
Our opportunities in Beyond Beer
will initially be captured through the
Somersby and Garage brands, which
are well established in many
markets. The category currently
accounts for 2% of our total volumes.
We aim to grow the Beyond Beer
category in our business through
increased investments in brand
building, innovation, footprint
expansion and execution. We will
also explore opportunities to expand
our Beyond Beer portfolio through
partnerships and local brand
extensions, leveraging our strong
route-to-market.
ACCELERATE GROWTH IN ASIA
Asia has been and remains a key
volume and value growth driver for
the Group.
As part of Accelerate SAIL, we remain
committed to growing in China, which
is our largest market. We still see
attractive volume and value growth
opportunities in this market in the
coming years for our strong premium
portfolio of local and international
beer and Beyond Beer brands, both in
our strongholds in the western part of
the country and in the big cities. We
will strengthen our presence and
market share in existing big cities by
developing and advancing our route-
to-market, while continuing to seed
for the future in recently entered and
new cities.
In Vietnam, we will continue the
execution of our multi-year
transformation strategy with its clear
ambition to accelerate momentum by
increasing investments and achieve
growth through focus on key brands,
regions and capabilities. In India, we
will investigate an acceleration plan
when possible.
DRIVE PROFITABLE GROWTH IN
STRONGHOLDS
We will maintain our focus on driving
profitable growth in our stronghold
markets, such as the Nordics,
Switzerland, France and Laos by
leveraging our strong portfolios, our
scale and leading route-to-market
set-up.
DRIVE DIGITAL
TRANSFORMATION
We have identified the key
capabilities and enablers for the
delivery of our Accelerate SAIL
ambitions. These require improved
tools, processes and digitisation in
areas such as value management,
sales execution and B2B e-
commerce (eB2B) to drive revenue
growth, and in the areas of supply
chain management end to end and
transactional processes to drive
productivity. We will ensure the right
investments behind these capabilities
and enablers.
FUNDING OUR JOURNEY
Over the coming years, we intend to
restore gross margins to pre-COVID
levels to enable the step-up in
investment levels required to capture
the growth opportunities. The
opportunities lie in supply chain
areas such as procurement, value
engineering and standardisation of
raw and packaging materials across
markets.
The Group already has a very strong
and well-embedded cost focus
across the business, centred in
particular around SG&A costs and
enabled by the operating cost
management (OCM) framework,
which will be maintained.
BUILD A GROWTH CULTURE
Carlsberg has a strong performance-
and cost-focused culture. Building
on this strong foundation, we will
develop our corporate culture to
become more growth-oriented and
reward calculated risk-taking.
We will do that by developing our
Leadership Charter to show how our
values translate into behaviours,
ways of working and leadership
profiles, and design employee
incentive programmes to support a
growth culture. Our growth culture
will also encompass a systematic
approach to talent development
across the Group and increase global
mobility to ensure the right
capabilities at the right time in the
right place.
TOGETHER TOWARDS ZERO
AND BEYOND
We remain committed to our ESG
programme - Together Towards
ZERO and Beyond - and our
ambitious targets for carbon
emissions, regenerative farming,
packaging, water, irresponsible
drinking, accidents and diversity.
RAISING OUR AMBITIONS
As a result of Accelerate SAIL, we
are raising our long-term growth
ambitions (with 2024 as baseline):
• Organic revenue growth of 4-6%
CAGR (previously 3-5%).
• Organic operating profit growth
ahead of revenue growth.
The financial health of the business
is strong and provides a good
foundation for Accelerate SAIL. In
the coming years, we will increase
our commercial investments to
support our growth ambitions.
Consequently, we expect
marketing/revenue to reach around
9%. We will increase sales expenses,
but aim to keep SG&A/revenue flat
through continued tight G&A cost
control. The higher commercial
investments will be financed by
gradually restoring the gross margin
to pre-COVID levels through supply
chain productivity improvements.
Our capital allocation priorities –
in place since 2016 – remain
unchanged (see page 10).
SAIL’27 is presented in full in the
2022 Annual Report, available on
www.carlsberggroup.com. In the
following pages, we highlight
examples of how SAIL’27 came
alive during 2023.
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
21
Step up in
premium
BROOKLYN
BEER DELIGHTS
FESTIVAL-GOERS
Recognised globally as an iconic
craft beer brand, Brooklyn is a
craft beer for the many, bringing
the welcoming spirit of Brooklyn to
the world. Embracing this essence
of diverse communities, common
values and self-expression, Brooklyn
Pilsner was the official beer of the
Glastonbury Festival in the UK – the
world’s largest greenfield music and
performing arts event. As a festival
that encourages and stimulates
culture around the world, there
were clear synergies with Brooklyn’s
values. Bars located across the
expansive site served Brooklyn
Pilsner throughout the five-day
event, delighting festival-goers with
the ultimate summer refreshment.
We also engaged with a wide range
of other amazing music festivals
across Europe, including Roskilde
Festival, Copenhell and Queer
Distortion in Denmark, Sideway
Festival in Finland and 12 different
festivals in Poland, all serving up our
vibrant portfolio of beers. In 2023, we
reached close to one million happy
festival-goers, supporting the total
Brooklyn volume growth of 34%.
Strengthen mainstream
core beer
LEVERAGING
OUR CORE BRANDS
IN CHINA
Around 60% of our beer volumes
in China comprises local core beer
brands, which are well established
and enjoy strong market positions in
their home regions. Brands include
Dali, Xixia, Wusu and Chongqing.
While the local brands have slightly
different brand identities, they
share many similarities, including
an image of being trustworthy and
modern. To reinforce the strength
of the local power brands, in 2023
we successfully enhanced the
local bonding and consolidated
the brand equity of these brands,
sharpening their position in the local
regions. While acknowledging the
strong mainstream position, we
also strive for continued relevance
by driving bold innovation and
offering premium line extensions,
such as extra malt, white beer and
pure draft, applying a repeatable
commercial model across brands.
In 2023, our local mainstream core
beer portfolio in China grew by 7%.
Step up in
premium
1664 – A LIFE-
STYLE BRAND
In 2023, we unveiled a refreshed
identity for 1664 to elevate the
brand image and build on its global
success. While the iconic blue bottle
is unchanged, the primary packaging
now features a more contemporary
iteration of the brand’s cockade,
variant styling, and a bold yet
elegant new bespoke typeface, all
printed on premium matte label
paper. Still undeniably French,
the refreshed brand identity was
designed to feel modern, be easily
recognisable and continue to build
premium perceptions. 1664 became
our key international super-premium
brand in 2016, and its continued
success builds upon well-executed
strategies for brand assets, portfolio
offerings, distribution and execution.
In 2023, 1664 grew by 3%, supported
by strong growth in both existing
and new markets, such as Norway,
Finland, Switzerland, Serbia, Ukraine
and Vietnam.
Strengthen mainstream
core beer
MYTHOS
– THE BEER
OF CHOICE
Mythos, our local power brand in
Greece, was initially introduced in
Thessaloniki in 1997. It is a modern
and dynamic brand that encourages
consumers to live life to the fullest.
Thanks to a series of updates, such
as the launch of Mythos Radler in
2014, implementation of the pull-off
cap in 2016 and the introduction of
Mythos Ice in 2020, Mythos has
cemented its place as one of the
most popular beer brands in Greece.
Despite the difficulties faced during
the COVID-19 pandemic, we took
the initiative to revamp Mythos
in 2022, positioning it as the beer
of choice for an inclusive society
where entertainment and fun are
considered fundamental rights. The
2023 campaign featured TV and
online commercials accessible to
hearing- and sight-impaired people,
showcasing Mythos’ support of
real people’s fight for an inclusive
society. Strengthened market share
and volume growth of 3% in 2023
are testimony to Mythos’ success.
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
22
Step up in premium
and Accelerate Beyond Beer
TAKE A BREAK
AND CHILL
Wind Flower Snow Moon (WFSM)
is one of our local premium brands
in China. It comes from the beautiful
Yunnan province and was first
launched in 1996. The name, bottle
and labelling elegantly encapsulate
the spirit and nature of Yunnan,
encouraging consumers to take a
break to chill and enjoy life. Thanks
to continual updates to drive a
modern and young image, and
activations in both the off- and
on-trade and online, the brand has
delivered strong growth despite
the challenges of COVID, almost
tripling volumes since 2016. In 2023,
we expanded the reach of WFSM
through the launch of the low-alcohol
WFSM in the Beyond Beer space.
The low-alcohol WFSM will play
in the premium-plus segment and
be a vehicle for further expansion
outside the home region of Yunnan.
At the same time as attracting new
consumers, the low-alcohol WFSM
leverages the young adult, chill and
joyful positioning of the premium
WFSM beer. In 2023, total WFSM
volumes increased by more than 60%.
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
23
Execution
excellence
TECH-ENABLED
SALES
EXECUTION
Faced with an increasingly
competitive environment, the need
to digitise, analyse and optimise
sales in stores has never been
greater. Image recognition powered
by artificial intelligence (AI) enables
us to turn images into insights to
unlock the potential of every shelf
across all outlet channels and fuel
our data-driven approach in sales
execution. More specifically, AI-
powered image recognition allows
our sales teams to identify in-store
performance gaps and delivers real-
time actionable insights to increase
revenue opportunities at all points
of sale; provides instant visibility
in channels, brands, products and
competitors to improve compliance
and drive sales; reduces audit
time; and enables cost efficiencies.
Additionally, implementing image
recognition supports our culture
of continuous improvement and
innovation. During the year, we
began the roll-out of AI-powered
image recognition across Western
Europe and Asia.
Manage supply
chain end to end
TRANSFORMING
SUPPLY CHAIN
CAPABILITIES
We are transforming our end-to-end
supply chain planning capability to
enhance our agility and improve our
supply chain resilience. In 2023, we
went live in the first market with
OnePlan, which is a programme
that will transform our supply
chain planning capabilities and be
a key growth enabler. OnePlan is
a new-generation planning tool,
bringing together all aspects of
supply chain planning, including
demand, supply, inventory,
production and materials planning.
It enables a fully connected sales
and operations planning (S&OP)
process and near-real-time “what if”
scenario planning, as well as faster
identification of capacity constraints
and faster response time to changes
in demand. The significant benefits
of OnePlan will not only be seen in
the supply chain, but will also be
tangible in the commercial area by
improving demand visibility across
customers and products, and in
finance by increasing the speed of
data availability and analysis.
Accelerate growth
in Asia
STRENGHTENING
OUR BUSINESS
IN VIETNAM
Vietnam is one of the largest
beer markets in the world with a
very strong beer culture among
consumers – more than 90% of
alcohol consumed is beer. We have
been present in this core Asian
market since 1993, and now hold a
strong position in the central part of
the country with the Huda brand. The
market posted a good post-COVID
recovery in 2022 but came under
significant pressure in 2023 because
of the country’s economic downturn.
Despite this, we still believe Vietnam
holds exciting growth opportunities
for us, and expanding our business
and building a winning portfolio in
this market remain an important
priority within Accelerate SAIL. Our
winning portfolio includes Carlsberg,
1664 Blanc, Tuborg, Somersby and
the core mainstream brand Huda. In
2022 and 2023, we step-changed our
execution capabilities and expanded
our business, resulting in volume
growth of 8%.
OUR ESG PROGRAMME
TOGETHER TOWARDS
ZERO AND BEYOND
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
24
Our ESG programme, Together
Towards ZERO and Beyond
(TTZAB), is an integral part of
Accelerate SAIL and our
response to global challenges
such as climate change, water
scarcity and inequality.
The programme focuses on 11 areas
identified through an assessment of
the most material ESG impacts of our
business. In 2023, we reconfirmed the
relevance of these topics through our
first double materiality assessment.
Our targets and commitments enable
us to tackle global social and
environmental challenges, and our
actions help us mitigate risks and
capture opportunities, including the
generation of new business.
TTZAB also bolsters our licence to
operate, boosts our reputation and
strengthens our relationships with
stakeholders – including our people,
consumers, customers, suppliers and
investors – by demonstrating our
commitment to acting responsibly
and taking positive action on ESG.
Our targets and commitments
demand transformative change –
across our operations and value
chain – that we cannot achieve
alone. Partnering with suppliers,
customers, consumers and
communities remains central to our
approach as we drive progress
Together Towards ZERO and Beyond.
See how we exceeded our 2022
target for reducing carbon emissions
across the full value chain and
examples of how we are working
with partners to deliver on our
TTZAB ambitions and targets on
pages 26-27.
OUR ESG REPORTING
Our ESG Report, available at
www.carlsberggroup.com/reports-
downloads/carlsberg-group-2023-
esg-report, provides comprehensive
information on the TTZAB
programme, ambitions, targets,
governance, performance and
partnerships.
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
25
The ESG Report serves as our
statutory statement on corporate
social responsibility in accordance
with sections 99a, 99d and 107d of
the Danish Financial Statements Act.
Communication on Progress to the
UN Global Compact, which will be
submitted in 2024 in line with new
requirements.
Next year, we will align our ESG
reporting approach and format with
the forthcoming EU Corporate
Sustainability Reporting Directive and
the corresponding European
Sustainability Reporting Standards.
Our ESG actions also contribute
to the UN’s global ambitions on
sustainability. Our ESG Report
forms the basis for our 2023
We have also issued our first stand-
alone Human Rights Report, which
provides more detail on our due
diligence approach and the actions
we are taking to uphold human
rights throughout our value chain.
Our Human Rights Report is
available at
www.carlsberggroup.com/reports-
downloads/carlsberg-group-2023-
human-rights-report/.
30%
REACHING OUR 2024 TARGET FOR WOMEN IN
LEADERSHIP ROLES
We are actively working to attract, retain and develop more women in the brewing
industry and our own business, driven by ambitious targets to increase the number of
women in leadership. We partner with groups such as Brewers of Europe and the Pink
Boots Society to attract more women into brewing careers, and we encourage women
to join our graduate and apprenticeship programmes. In 2023, we launched a global
sponsorship programme to help develop women leaders identified as having potential to
take on executive roles. Each of the first 12 women to participate – chosen from across
our regions and functions – was paired with a senior sponsor for six months of coaching,
support and access to networks of internal influencers, which will better prepare them
for later success at the top of the company.
TOGETHER TOWARDS ZERO & BEYOND
Together Towards ZERO
and Beyond
REDUCING VALUE
CHAIN CARBON
EMISSIONS PER
HL BY 16% FROM
2015 TO 2022
HOW DID WE ACHIEVE
OUR TARGET?
% OF TOTAL VALUE CHAIN
EMISSIONS IN 2022
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
26
In 2023, we completed our latest
three-year analysis of our value
chain carbon emissions, based on
2022 data. The analysis confirmed
that we have slightly exceeded our
target to cut value chain emissions
per hl of beer produced by 15% by
2022 from the 2015 baseline. To
reach our target of a net ZERO value
chain by 2040, we will continue to
work closely with our suppliers as
they play a critical role in helping us
reduce our carbon footprint at every
stage of the value chain.
More details on our value chain
carbon emissions reductions can
be found in the ESG Report.
24%
Agriculture
& processing
11%
45%
Breweries
Packaging
10%
10%
Transportation
& distribution
Cooling
EMISSIONS REDUCTIONS
2015-2022
-18%
-41%
-3%
-10%
-26%
Agriculture
& processing
Lower-carbon solutions in
malting processes were a
major progress driver, while
increased usage of rice
and sugars added carbon
intensity.
Breweries
Reductions supported by the
elimination of coal, increased
energy efficiency and use
of renewable electricity and
innovative solutions, such as
the extraction of biogas at
on-site wastewater treatment
plants.
Packaging
Carbon intensity reduced
across all packaging types, and
recycling rates for PET bottles
and aluminium cans improved.
Progress was counteracted by
an increased share of cans and
fewer refillable glass bottles in
the overall packaging mix.
Transportation
& distribution
Reduction primarily achieved
by efficiency improvements,
supported by marginal
improvements from
electrification and reduced
business travel.
Cooling
Reduction in emissions from
fridges and beer dispense
equipment through the use of
energy management devices,
decarbonisation of national
electricity grids and other
initiatives.
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
27
Together Towards ZERO
and Beyond
PUTTING
WATER ON TAP
IN CAMBODIA
Around one in five people lack
essential access to clean water in
Cambodia. Our new partnership
with the social enterprise TapEffect
will establish water supply and
associated infrastructure, providing
access to clean water for more than
6,800 people in a remote rural area
in Pursat province. The project will
include a treatment plant, clean
storage, a pumping system and
over 50 km of pipework. Within
two years, it is expected to deliver
7 million litres of water per month.
By 2025, it is projected to yield
around 25% of the water needed
to replenish consumption at our
brewery in Sihanoukville.
Together Towards ZERO
and Beyond
A NEW
REGENERATIVE
BREW FOR THE UK
Our journey towards 100%
regenerative barley in the UK has
begun. Carlsberg Marston’s Brewing
Company and the Archer-Daniels-
Midland Company contracted 23
farmers to grow an estimated 686
tonnes of regeneratively grown
barley in 2023 using techniques such
as no- or low-tillage, planting cover
crops and restricting chemical use to
the minimum required. The harvest
will be used to brew Carlsberg
Danish Pilsner from 2024. We aim to
expand this pilot to source enough
regenerative barley to brew all
Carlsberg beer in the UK by 2027,
and we are committed to making
our brews in the UK with 100%
regenerative barley by 2031.
Read more about these and other
case stories in the ESG Report.
Together Towards ZERO
and Beyond
TEAMING UP
WITH THE TOUR
DE FRANCE
Tourtel Twist offers alcohol-free beer
mixes combined with fruit juices free
of colouring, sweeteners and artificial
flavours. This tasty and healthy
combination has made it France’s
most popular alcohol-free beer and
our biggest-selling alcohol-free brand
in Western Europe. For Tourtel Twist,
2023 was the second of three years
as an official supplier of the Tour
de France. The partnership with the
Tour de France generated around
340 million contacts through TV and
social media advertising, supporting
our efforts to raise awareness of
responsible drinking. In 2024, Tourtel
will not only be an official supplier
of the Tour de France but also
an official supporter of the Paris
Olympics.
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
28
ADDRESSING CLIMATE RISKS
CLIMATE RISKS
IMPACTING OUR BUSINESS
Climate change is affecting our
operations and value chain.
Across our regions, we see
its impact through land
degradation and more frequent
extreme weather events.
reporting in this Annual Report and
in our ESG and Remuneration
Reports.
We are working to understand the
related risks and opportunities, and
to mitigate impact on our business.
ZERO
Our annual ESG Report details our
Together Towards ZERO and
Beyond approach, progress towards
our ambitious ZERO Carbon
Footprint, ZERO Water Waste and
ZERO Farming Footprint targets, and
the actions we are taking to support
the Paris Agreement on Climate
Change to limit the increase in global
average temperature to a maximum
of 1.5°C.
The report also addresses our
exposure to climate change-related
risks and the impacts on our value
chain.
In the table on page 29, we outline
the relevant sections for TCFD
FARMING FOOTPRINT
Agriculture is the second-largest driver of our value
chain carbon emissions. We cannot reach net ZERO by
2040 without taking steps to reduce its climate impact.
Today’s food systems, including intensified agricultural
production, are also the primary driver of the
acceleration in biodiversity loss that is threatening the
health of the planet. We have made bold commitments
to ensure that all our raw ingredients are sourced
sustainably and produced using regenerative agricultural
practices by 2040. These commitments will support
global action on environmental challenges, improve
farmers’ livelihoods and help us secure a sustainable
supply of raw ingredients – from barley to rice – to
make our brews now and in the future. Read more
about how we will move towards 100% regenerative
agricultural raw materials by 2040 in the ESG Report.
TOGETHER TOWARDS ZERO & BEYOND
CARLSBERG GROUP ANNUAL REPORT 2023 CREATING VALUE
29
Task Force on Climate-related Financial Disclosures (TCFD) reporting recommendations
Recommendation
Governance
Disclose the organisation's governance
around climate-related risks and
opportunities.
Strategy
Disclose the actual and potential impacts
of climate-related risks and opportunities
on the organisation’s businesses, strategy
and financial planning, where such
information is material.
Risks
Disclose how the organisation identifies,
assesses and manages climate-related
risks.
Metrics and targets
Disclose the metrics and targets used to
assess and manage relevant climate-
related risks and opportunities, where such
information is material.
Our disclosure in brief
The Supervisory Board is ultimately responsible for risk management, including climate-related risks, and has appointed the Audit Committee
to act on its behalf in monitoring the effectiveness of the Group’s risk management. The Executive Committee (ExCom) is responsible for
reviewing the overall risk exposure associated with the Group’s activities and ensuring that appropriate actions are taken.
In 2022, the Supervisory Board reviewed and approved our enhanced ESG programme, Together Towards ZERO and Beyond (TTZAB),
including revised and new targets related to carbon, packaging, water and agriculture. Progress against TTZAB targets is reported monthly to
ExCom, where climate change is specifically covered at least biannually, and at least twice a year to our Supervisory Board.
Learn more
• Risk management framework, pages 48-49.
• Overview of Supervisory Board work and
responsibilities, pages 44-46.
• ESG Report, section on governance and
transparency.
Climate-related risks and opportunities have been assessed through a series of analyses. Some specific categories of risks have been assessed,
including, but not limited to, regulatory risks (e.g. carbon pricing), reputational risks, extreme weather risks and water risks. More specific and
detailed financial effects of the risks will be further analysed in 2024. Based on existing analyses, however, our preliminary conclusion is that
climate-related risks would only be financially material in the long term.
Mitigation actions are implemented in response to the results of risk assessment and scenario analysis where risks are identified. Furthermore,
climate-related hazard risk analysis has been integrated into the requirements for making capital expenditure investments above a certain
level.
TTZAB targets to reduce our own and our value chain environmental footprints will also help us reduce some of the climate-related transition
risks.
• Together Towards ZERO and Beyond, pages 24-
27.
• ESG Report, sections on ZERO Carbon Footprint,
ZERO Farming Footprint and ZERO Water Waste.
• ESG Report, section on governance and
transparency: double materiality assessment.
From 2023, climate-related impacts, risks and opportunities are reviewed annually in our double materiality assessment (DMA) process. This
includes short-, medium- and long-term time horizons.
Our preliminary DMA, conducted in 2023 and summarised in a voluntary disclosure, confirmed that climate change was among the highest-
ranking issues for us to address, both in terms of impact and long-term financial materiality. As transition risks are one of the key areas, we
analyse our total value chain carbon emissions (Scope 1, 2 and 3 emissions) to measure progress towards our emissions reduction targets and
identify where to focus our efforts to reduce emissions and mitigate risk.
For some specific risks related to climate change, we have additional processes in place. Physical/hazard risks in our assets (including both
production sites and warehouses) are assessed annually by applying three RCP scenarios (RCP 2.6, 4.5 and 8.5). For water-related risks, we
used WWF’s Water Risk Filter to identify which of our breweries are in areas of high water risk, as well as carrying out water risk assessment
of two key commodities, rice and barley.
• Risk management framework, pages 48-49.
• ESG Report, section on governance and
transparency.
• ESG Report, sections on ZERO Carbon Footprint
and ZERO Water Waste.
• ESG Report, section on governance and
transparency: double materiality assessment.
TTZAB is an integral part of Accelerate SAIL and includes our bold target to achieve a net ZERO value chain by 2040 – ahead of the global
2050 timeline demanded by science – to guide our long-term carbon reduction agenda. Our science-based targets to reduce emissions are
approved by the Science Based Targets initiative, and we aim to reduce emissions in line with the goal of the Paris Agreement to limit global
warming to a maximum of 1.5°C. TTZAB’s focus areas and targets are based on an assessment of material ESG issues to ensure we focus on
the sustainability impacts, risks and opportunities that are most relevant to our stakeholders, including those related to climate change,
packaging, water and agriculture.
Our annual ESG Report discloses our approach, our TTZAB targets and progress to date, key performance indicators and actions to support
the UN Sustainable Development Goals and the UN Global Compact. The report includes detailed data on Scope 1, 2 and 3 carbon emissions,
energy and water. Our Scope 3 analysis, previously carried out every three years, will be performed annually from 2023. We have also
disclosed detailed information to CDP on our greenhouse gas emissions and approach to climate change management annually since 2007.
Sustainability measures, including the reduction of carbon emissions and water use, have been included in the long-term incentive scheme for
the Extended Leadership Team (ELT) from 2023. Approved by the Supervisory Board, ESG performance now accounts for 20% of the LTI
scheme for ELT for 2023-2025.
• Accelerate SAIL and Together Towards ZERO and
Beyond, pages 19, 24 and 26.
• ESG Report, sections on ZERO Carbon Footprint,
ZERO Farming Footprint and ZERO Water Waste.
• ESG Report, data summary tables.
• ESG Report, section on contributing to the UN
Sustainable Development Goals.
• Remuneration Report, section on remuneration of
the Executive Board.
2023 review and 2024 expectations
GROUP
SOLID RESULTS IN A
CHALLENGING ENVIRONMENT
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
30
The Group delivered a
solid set of results in a
challenging environment.
VOLUMES
Total Group volumes were 125.1m
hl, corresponding to a reported
growth rate of -0.3%. Beer volumes
declined organically by 0.4%, as
volume growth in Asia was offset by
lower volumes in Western Europe
and Central & Eastern Europe. Other
beverage volumes grew in Western
Europe, Central & Eastern Europe
and Laos, but total volume
development was -0.9%, impacted
by lower volumes in Cambodia.
INCOME STATEMENT
Revenue was DKK 73,585m.
Revenue/hl increased organically by
10%, resulting in strong organic
revenue growth of 9.2%. The
revenue/hl improvement was
primarily driven by price increases
across markets to offset the
significant cost increases and
supported by a positive product mix.
Reported revenue grew by 4.7%. The
negative currency impact related to
the strengthening of the Danish
currency against, in particular, the
Chinese, Laotian, Indian, Ukrainian,
Norwegian and Swedish currencies.
The small acquisition impact related
to the acquisition of Waterloo
Brewing in Canada.
Gross profit increased organically by
7.4% and by 2.4% in reported terms.
Gross profit was positively impacted
by the increase in revenue/hl and
negatively by the increase in cost of
sales of 6.7%. The reported gross
margin was 44.6%, a decline of
100bp.
We maintained our focus on costs,
supporting our efforts to offset
inflation and increase investments in
brands and activities. Consequently,
marketing investments were up
organically by 10% and by 7% in
reported terms. As a percentage of
revenue, reported marketing
investments increased slightly to 8.4%,
with a larger increase in H2 following
the Q3 decision to accelerate
commercial investments.
expenses excluding marketing
improved by 30bp to 22.1%.
in Carlsberg Byen and certain one-off
expenses in associates in Asia.
Total reported operating expenses
increased by 4.0%, supported by lower
administrative costs. As a percentage
of revenue, reported operating
Other operating activities increased by
DKK 56m, while profit from
associates declined by DKK 320m,
mainly due to lower property income
Operating profit before depreciation,
amortisation and impairment losses
(EBITDA) grew organically by 3.9%
Earnings expectations 2023
Date
7 February 2023
27 April 2023
15 August 2023
7 February 2024
Group
Expectation for operating profit
Organic growth in operating profit of -5% to +5%.
Organic growth in operating profit of -2% to +5%.
Organic growth in operating profit of +4% to +7%.
Organic growth in operating profit of 5.2% (reported).
2022
Organic
Acq., net
FX
2023
Reported
Change
Change
Volumes (million hl)
Beer
Other beverages
Total volume
DKK million
Revenue
Operating profit
Operating margin (%)
101.0
24.4
125.4
70,265
11,470
16.3
-0.4%
-0.9%
-0.5%
0.3%
0.0%
0.2%
-
-
-
9.2%
5.2%
0.6%
-0.2%
-5.1%
-8.2%
101.0
24.1
125.1
73,585
11,105
15.1
-0.1%
-0.9%
-0.3%
4.7%
-3.2%
-120bp
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
31
but declined by 3.1% in reported terms
due to adverse currencies.
Section 1 of the consolidated
financial statements contains more
details on operating activities.
The reported operating profit before
special items development of -3.2%
was impacted by strengthening of
the Danish krone against, in
particular, the Chinese, Laotian,
Ukrainian and Norwegian currencies.
The small acquisition impact related
to the acquisition of Waterloo
Brewing in Canada. The reported
operating margin decreased by
120bp to 15.1%, mainly due to the
lower gross margin and increased
marketing investments.
Net special items (pre-tax) amounted
to DKK -431m (2022: DKK -784m).
Special items were positively impacted
by reversal of brand impairment in
China and the derecognition of a loan
to Baltika Breweries, and negatively
impacted by impairment of certain
brands, impairment related to the
business in Cambodia, the cost of
terminating the Kronenbourg 1664
licensee agreement in the UK,
restructuring costs, costs related to
acquisitions and impairment of
receivables from Baltika Breweries.
HOME OF CARLSBERG
SEE, HEAR AND TASTE THE STORY OF
CARLSBERG
It all began in 1847, when Carlsberg’s founder, J.C. Jacobsen, established his brewery on
a small hilltop just outside Copenhagen. Since 1982, the original brewery with its unique
narrative and its historic and well-preserved buildings has become an increasingly
popular tourist attraction. After extensive restoration in recent years, we reopened the
doors to Home of Carlsberg in 2023. The new exhibition showcases Carlsberg’s pivotal
role in modern beer brewing, the essential ingredients of beer, the stables housing the
majestic brewery horses, a bottle collection that will amaze, architectural buildings, a
great restaurant, beer tastings, and engaging storytelling about family feuds, scientific
breakthroughs and much more.
OUR WINNING CULTURE
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
32
Read more about net special items in
section 3.1 of the consolidated
financial statements.
Financial items, net, amounted to
DKK -844m (2022: DKK -725m).
Excluding currency gains and losses,
financial items, net, amounted to
DKK -693m (2022: DKK -506m).
The increase was mainly a result of
higher average funding costs due to
refinancing and higher short- and
long-term interest rates and higher
net interest-bearing debt. Net
currency losses amounted to DKK
151m, mainly related to the
strengthening of the EUR/DKK and
conversion costs for the Laotian kip.
Read more about net financial items
in section 4.1 of the consolidated
financial statements.
Tax totalled DKK -1,859m (2022:
DKK -1,778m). The normalised tax
rate was 20.8%, while the effective tax
rate was 18.9% due to non-recurring
items, including adjustments related
to prior years and the deconsolidation
of the Russian business. Section 6.1
of the consolidated financial
statements contains more details on
income tax.
The Carlsberg Group’s share of profit
from continuing operations amounted
to DKK 6,960m (2022: DKK
7,012m). The Group’s share of
consolidated profit (net profit) for the
period was DKK -40,788m (2022:
DKK -1,063m), impacted by the
deconsolidation of the Russian
business, which led to the recognition
of accumulated currency translation
and hedge losses for the period of
2004 to 2023 of DKK 41,504m and
impairment losses of DKK 7,002m,
giving a net result from the Russian
operation of DKK -47,748m.
Read about the accounting
treatment and impact of the
deconsolidation of the Russian
business in section 5.1 of the
consolidated financial statements.
Non-controlling interests’ share of
profit for the period was DKK
1,011m (2022: DKK 1,171m). The
non-controlling interests consist of
Lao Brewery, Carlsberg Chongqing
Breweries Group, Carlsberg Malaysia
Group and Carlsberg Marston’s
Brewing Group, as well as other
minor interests, primarily in the Asia
region.
Adjusted net profit (adjusted for
special items after tax), continuing
operations, declined by 4.6% to DKK
7,425m. Adjusted earnings per share
declined by 2.0% to DKK 54.6 (2022:
DKK 55.7), supported by the share
buy-back. Reported earnings per
share of DKK -299.7 were impacted
by the deconsolidation of the
Russian business.
STATEMENT OF FINANCIAL
POSITION
ASSETS
Total assets amounted to DKK
111,831m at 31 December 2023 (31
December 2022: DKK 115,341m).
The main reason for the decrease
was the deconsolidation of the
Russian business, the assets of which
amounted to DKK 11,618m in 2022,
partly offset by higher current assets.
Total non-current assets amounted
to DKK 81,633m (31 December
2022: DKK 81,092m).
Intangible assets totalled DKK
49,100m (31 December 2022: DKK
49,223m). Intangible assets were
impacted by currencies, in particular
the Chinese and Laotian, and
impairment of brands, offset by the
acquisition of Waterloo Brewing and
reversal of brand impairment in
China.
Property, plant and equipment
totalled DKK 24,405m (2022: DKK
23,679m). The increase was mainly
impacted by additions and the
acquisition of Waterloo Brewing in
March 2023. Financial assets of DKK
8,128m were on a par with 31
December 2022 (DKK 8,190m).
Total current assets amounted to
DKK 30,198m (31 December 2022:
DKK 22,631m). The increase was
mainly due to higher cash and cash
equivalents and deposits, following
the net issuance of EMTN bonds of
EUR 1.55bn.
23,234m of which was attributable
to shareholders in Carlsberg A/S and
DKK 2,515m to non-controlling
interests.
Inventories amounted to DKK
5,811m (31 December 2022: DKK
5,718m), trade receivables to DKK
5,102m (31 December 2022: DKK
5,067m) and various other
receivables to DKK 3,667m (31
December 2022: DKK 3,683m).
Deposits and securities amounted to
DKK 2,236m (31 December 2022:
DKK 0) and were deposits not
meeting the definition of cash and
cash equivalents but co-managed
with cash and cash equivalents. Cash
and cash equivalents amounted to
DKK 13,382m (31 December 2022:
DKK 8,163m).
Section 2 of the consolidated
financial statements contains more
details on assets and section 4.5.2
on cash and cash equivalents.
Assets in discontinued operations
totalled DKK 0m (31 December
2022: DKK 11,618m) following the
deconsolidation of the Russian
business.
EQUITY AND LIABILITIES
Equity
Equity amounted to DKK 25,749m
at 31 December 2023 (31 December
2022: DKK 34,722m), DKK
The change in equity of DKK
-8,973m mainly related to the profit
for the period of DKK -39,777m,
other comprehensive income of DKK
38,556m, dividends paid to
shareholders and non-controlling
interests of DKK -4,844m and the
share buy-back of DKK -3,200m.
Liabilities
At 31 December 2023, non-current
and current borrowings amounted to
DKK 39,101m (31 December 2022:
DKK 28,646m): non-current
borrowings of DKK 30,763m (31
December 2022: DKK 22,865m) and
current borrowings of DKK 8,338m
(31 December 2022: DKK 5,781m).
The increase in non-current
borrowings of DKK 7,898m was
impacted by the issuance of three
EUR bonds under the company’s
Euro Medium Term Notes (EMTN)
programme during the year: a 3.5-
year EUR 750m bond in May, and in
September a 5-year EUR 700m and
a 10-year EUR 600m bond. This
was partly offset by the
reclassification of a EUR 1bn bond
maturing in May 2024 to current
borrowings. Current borrowings were
reduced by a EUR 500m bond,
which matured in September 2023.
Non-current tax liabilities, retirement
benefit obligations etc. amounted to
DKK 8,089m (31 December 2022:
DKK 9,007m). The decline was
mainly the result of a decline in the
Group’s obligation, net, on defined
benefit plans, the settlement of a
fine related to a competition case in
Germany, and the reversal of other
legal and contractual obligations
that did not materialise.
total amounting to EUR 2,050m,
more than offsetting the cash returns
in the form of dividends and share
buy-backs, in total amounting to
DKK -8,001m.
CASH FLOW FROM OPERATING
ACTIVITIES
Cash flow from operating activities
amounted to DKK 11,607m (2022:
DKK 12,949m).
Current liabilities excluding current
borrowings were DKK 38,892m (31
December 2022: DKK 38,866m).
EBITDA amounted to DKK 15,179m
(2022: DKK 15,657m), negatively
impacted by currencies.
The change in trade working capital
was DKK +698m (2022: DKK
+1,908m), mainly impacted by an
increase in trade payables. Average
trade working capital to revenue for
the year remained strong at -20.3%
(2022: -21.5%).
The change in other working capital
was DKK -780m (2022: DKK
-465m), impacted by the payment
of a competition fine in Germany.
A specification of trade working
capital and other working capital is
shown in section 1.4 of the
consolidated financial statements.
Liabilities in discontinued operations
totalled DKK 0m (2022: DKK
4,100m) following the
deconsolidation of the Russian
business.
CASH FLOW
Free operating cash flow amounted
to DKK 7,469m (2022: DKK
9,474m), impacted by the lower
EBITDA and net contribution from
the change in working capital, higher
capital expenditure (CapEx).
Free cash flow amounted to DKK
4,878m (2022: DKK 9,884m),
impacted by an increase in financial
investments.
Net cash flow amounted to DKK
5,254m (2022: DKK 1,696m),
positively impacted by the issuance
of three bonds during the year, in
Net interest etc. paid amounted to
DKK -273m (2022: DKK -1,010m).
The improvement was mainly due to
the settlement of financial
instruments. Corporation tax paid
was DKK -2,166m (2022: DKK
-2,103m).
CASH FLOW FROM INVESTING
ACTIVITIES
Cash flow from investing activities
was DKK -6,729m (2022: DKK
-3,065m).
Acquisition of property, plant and
equipment and intangible assets
(CapEx) amounted to DKK -4,243m
(2022: DKK -4,018m), while total
operational investments amounted
to DKK -4,138m (2022: DKK
-3,475m), also impacted by a small
negative contribution from the
change in on-trade loans compared
with a positive contribution in 2022.
Total financial investments
amounted to DKK -2,591m (2022:
DKK +410m), mainly attributable to
the placement of cash in deposits not
meeting the definition of cash and
cash equivalents. In the cash flow
statement, this is presented as
acquisition of financial investments.
Restructuring costs and other special
items amounted to DKK -552m
(2022: DKK -171m), impacted by
the termination of the Kronenbourg
1664 licensee agreement in the UK.
RETURN ON INVESTED CAPITAL
ROIC was 14.5% (2022: 15.2%),
mainly impacted by the lower
reported operating profit before
special items due to currencies. ROIC
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
33
excluding goodwill was 38.3% (2022:
41.6%).
4.4 of the consolidated financial
statements.
SHARE BUY-BACK
2023 PROGRAMME
In 2023, we initiated three quarterly
share buy-back programmes, in
total amounting to DKK 3.0bn.
Shares worth DKK 2.7bn were
bought back in 2023 and the
remaining DKK 0.3bn in January
2024. A total of 3,160,923 shares
were bought at an average price per
share of DKK 949.
In fiscal 2023, 3,338,514 shares
were repurchased at a total purchase
price of DKK 3.2bn, equal to an
average price per share of DKK 958.
2024 PROGRAMME
Based on its continued strong
financial position, the Group initiated
a new quarterly share buy-back
programme on 7 February, with the
intention of buying back Carlsberg B
shares amounting to DKK 1.0bn up
until 19 April 2024.
FINANCING
At 31 December 2023, gross
financial debt amounted to DKK
39,101m (2022: DKK 28,646m) and
net interest-bearing debt to DKK
22,351m (2022: DKK 19,326m).
The increase in net interest-bearing
debt of DKK 3,025m was mainly the
result of the dividend payout, share
buy-back, CapEx and the acquisition
of Waterloo Brewing, partly offset
by cash flow from operating
activities.
The difference of DKK 16,750m
between gross financial debt and net
interest-bearing debt mainly
comprised cash and cash equivalents
of DKK 13,382m and deposits and
securities of DKK 2,236m.
At 31 December 2023, the average
debt duration was 5.7 years (2022:
4.1 years). Of the gross financial
debt, 79% (DKK 30,763m) was long
term, i.e. with maturity of more than
one year from 31 December 2023.
Net interest-bearing debt/EBITDA
was 1.47x (2022: 1.23x).
Read more about net-interest
bearing debt, capital structure and
borrowings in sections 4.2, 4.3 and
WESTERN EUROPE
SOLID RESULTS IN A
CHALLENGING YEAR
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
34
It was a challenging year for
Western Europe with
significant cost increases, a
weakening consumer
sentiment and bad weather
during the high season in Q3.
We gained market shares in the
majority of our markets in the region
thanks to good commercial
execution, but the overall declining
market meant beer volumes declined
organically by 3.8%.
Other beverage volumes grew by
0.7%, thanks to growth of the soft
drinks businesses in the Nordics.
Consequently, total volume
development was -2.3%.
Revenue/hl improved organically by
11%, mainly impacted by price
increases. In addition, revenue/hl
improved as a result of the inclusion
of excise duties in the UK following
the termination in June of the
Kronenbourg 1664 licensee
agreement. The full-year and H2
impact on revenue/hl was 1
percentage point and 2 percentage
points respectively. Organic revenue
growth was 8.9%, while reported
growth was 7.0%, mainly due to the
depreciation of the Norwegian and
Swedish currencies.
Organic operating profit growth was
3.3%, as the business was able to
offset the significant commodity,
packaging and energy cost increases
through higher revenue/hl and
continued cost focus.
The organic operating profit growth
was offset by currencies, and
reported operating profit growth was
0.3%. The operating margin
contracted by 90bp to 13.3%.
beer market share in a market that
was under pressure. We saw solid
performance for Tuborg, alcohol-
free brews and Beyond Beer
products.
MARKETS
THE NORDICS
Volumes in the Nordics were flat, as
declining beer volumes were offset
by solid growth in the soft drinks
portfolio.
In Norway, we grew volumes slightly
in a flat market, gaining market
share in both beer and soft drinks.
Our local premium brand,
Frydenlund, and the Pepsi portfolio
performed well.
In Denmark, total volumes were
slightly up. We strengthened our
In a slightly declining Swedish
market, we grew volumes by low-
2022
Organic
Acq., net
FX
2023
Reported
Change
Change
Volumes (million hl)
Beer
Other beverages
Total volume
DKK million
Revenue
Operating profit
Operating margin (%)
29.9
14.5
44.4
34,888
4,966
14.2
-3.8%
0.7%
-2.3%
8.9%
3.3%
0.0%
0.0%
0.0%
0.0%
0.0%
-
-
-
-1.9%
-3.0%
28.7
14.7
43.4
37,317
4,981
13.3
-3.8%
0.7%
-2.3%
7.0%
0.3%
-90bp
Markets
Denmark
Sweden
Norway
Finland
France
Switzerland
Poland
UK
Germany
Portugal
Our position
Market
position (no.)
Market
share¹ (%)
Our
operations
Breweries²
1
1
1
1
2
1
3
4
33
1
55
24
49
32
26
38
20
15
113
44
1
1
1
1
1
1
3
3
3
1
¹ YTD Sept. 2023. ² Breweries with capacity above 100,000 hl. ³ North-eastern
Germany. Source: Carlsberg estimates.
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
35
single-digit percentages. Despite
downtrading being observed in the
market, our premium brands
Eriksberg and 1664 Blanc both grew.
We gained market share, driven by
premium beer, alcohol-free brews
and soft drinks.
In Finland, volumes declined by low-
single-digit percentages. Our
premium portfolio delivered strong
growth, supported by good results
for 1664 Blanc and Brooklyn, and
alcohol-free brews also grew, while
mainstream core beer and other
beverages declined.
FRANCE
We gained market share in France,
despite our volumes being down by
mid-single-digit percentages. Our
premium portfolio outperformed the
market, supported by Grimbergen,
Brooklyn and local speciality brands.
We also saw good performance of
1664. Tourtel declined as a result of
lower promotional activity.
SWITZERLAND
The Swiss market was impacted by
negative consumer sentiment,
declining by an estimated low-
single-digit percentage. Our volume
development was in line with the
market. The premium Valaisanne
and 1664 Blanc brands did well, and
our alcohol-free portfolio grew
strongly. We continued to develop
the Pepsi portfolio and see appealing
long-term opportunities.
POLAND
After a challenging start to the year
in Poland, our performance improved
during the second half-year. Our
volumes declined by mid-single-digit
percentages for the full year, in line
with the market. Revenue/hl
improved significantly by high-teens
percentages, as we took several price
increases to mitigate significant cost
price inflation.
THE UK
In a challenging environment, our UK
business delivered solid performance
ahead of the market. We saw good
growth for premium brands such as
Poretti and Brooklyn, and for the
alcohol-free versions of Carlsberg
and Brooklyn. Total volumes
declined by low-single-digit
percentages, impacted by the loss of
a licence brand.
GROWING
ALCOHOL-FREE BREWS IN SWEDEN
The alcohol-free beer category is the fastest growing beer segment in Sweden, currently
accounting for approximately 5% of the total beer market. With an alcohol-free market
share of 54%, Carlsberg is a very strong player in Sweden with a broad portfolio of alcohol-
free brews catering for different consumer occasions and price points. The portfolio includes
Carlsberg – the no. 1 alcohol-free beer brand in Sweden – as well as Brooklyn, 1664 and
local brands such as Falcon, Pripps and Eriksberg. In 2023, we launched Carlsberg Hoppy
Lager 0.0%. This refreshing and thirst-quenching lager with flavourful aromatic hop notes
has taken Swedish consumers by storm, bringing an exciting innovation to the range.
Carlsberg Hoppy Lager 0.0% was a strong contributor to our no. 1 market position and the
12% growth of our alcohol-free brews in Sweden.
ACCELERATE ALCOHOL-FREE BREWS
ASIA
ANOTHER SET
OF GOOD RESULTS
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
36
Our Asia region delivered
another set of solid results in
an increasingly challenging
macroeconomic environment,
particularly in South-East Asia
and China.
Beer volumes grew organically by
5.1%, while other beverage volumes
declined by 5.8% due to weak energy
drinks volumes in Cambodia.
Organic revenue growth was 8.4%.
Revenue/hl grew organically by 5%,
supported by a positive brand mix
and price increases.
Reported revenue declined by 1.7%
due to a negative currency impact,
notably from the Laotian kip and
Chinese renminbi.
Operating profit increased
organically by 7.9%, positively
impacted by the volume and
revenue/hl growth, which more than
offset a step-up in commercial
investments. H2 in particular was
impacted by higher commercial
investments following our decision in
Q3 to accelerate investments in
certain markets.
Reported operating profit declined by
4.2% due to the adverse currency
impact.
MARKETS
CHINA
The Chinese beer market was flat
(estimate) for the year, but
weakened considerably during the
second half of the year. We
maintained our positive trajectory,
growing volumes by 5% and
strengthening our market share.
The growth was driven by both
premium and mainstream brands.
Our local power brands, such as
Chongqing, Wusu and Wind Flower
Snow Moon, did particularly well,
supported by an increase in domestic
tourism. Our premium brands
Carlsberg and Tuborg grew strongly,
while 1664 Blanc was impacted by
consumers becoming more price-
sensitive.
VIETNAM
We continued to expand our business
in Vietnam, delivering high-single-
digit volume growth in a market that
2022
Organic
Acq., net
FX
2023
Reported
Change
Change
Volumes (million hl)
Beer
Other beverages
Total volume
DKK million
Revenue
Operating profit
Operating margin (%)
42.0
6.3
48.3
23,682
5,435
22.9
5.1%
-5.8%
3.7%
0.0%
0.0%
0.0%
-
-
-
8.4%
7.9%
0.1%
-0.1%
-10.2%
-12.0%
44.1
5.9
50.0
23,288
5,208
22.4
5.1 %
-5.8%
3.7%
-1.7%
-4.2%
-50bp
Markets
China
Laos
India
Vietnam
Cambodia
Malaysia
Nepal
Myanmar
Singapore
Hong Kong SAR
Our position
Market
position (no.)
Market
share¹ (%)
Our
operations
Breweries²
5/13
9/673
26
1
3
4
3
2
1
4
2
2
94
14
8
5
45
59
11
21
31
2
7
1
1
1
1
1
-
-
¹ YTD Sept. 2023. ² Breweries with capacity above 100,000 hl. ³ Total China/
western China. 4 In the states where we operate. Source: Carlsberg estimates.
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
37
declined by close to a double-digit
percentage (estimated).
The growth was mainly driven by our
international premium brands, in
particular 1664 Blanc and Tuborg,
which benefited from the
strengthening of our route-to-
market and expanded coverage and
number of outlets, enabled by the
increase in our commercial
investments.
INDIA
Our business in India delivered high-
single-digit percentage volume
growth, supported by good growth
for Carlsberg and Tuborg. We gained
market share in some states,
supported by premium brand
growth. In other states, we lost
market share due to capacity
constraints, particularly during the
peak season.
LAOS
Volumes in Laos grew by high-
single-digit percentages, despite
several price increases during the
year to offset the significant
inflationary pressure. Revenue/hl
was supported, in addition to price,
by a positive mix because of good
performance for Somersby and the
Beerlao crafty line extension.
CAMBODIA
Following several years of significant
decline, our beer business in
Cambodia delivered solid high-
single-digit percentage growth,
albeit from a very low base.
However, total volumes declined
significantly due to deteriorating
volumes for the energy and soft
drinks business.
MALAYSIA AND SINGAPORE
The beer markets in Malaysia and
Singapore were challenged by the
macroeconomic slowdown. In
Malaysia, volume development was
better than the market and our
market share improved. In
Singapore, market share was flat,
supported by share gains in all
categories except premium, which
was subject to high promotional
pressure in the market.
TUBORG
SEXTUPLING VOLUMES IN ASIA
Over the past decade, Tuborg has become a popular brand in many Asian markets
following the launch of Tuborg in India in 2009, China in 2012, Vietnam in 2016, and
Laos and Cambodia in 2017. Despite the setback due to COVID, Tuborg volumes in Asia
have sextupled since 2013, supported by volumes more than quadrupling in India and
increasing by more than tenfold in China, where it quickly became – and remains – our
largest premium brand. To further cement Tuborg’s brand vision of being a catalyst of
excitement, fun and movement within a world full of unexpected and playful
experiences, we launched Tuborg Ice and a new global Tuborg campaign – Tilt your
World – in 2023. Supported by strong growth in markets such as China and Vietnam,
Tuborg grew by 7% in Asia.
STEP UP IN PREMIUM AND ACCELERATE IN CORE MARKETS IN ASIA
CENTRAL & EASTERN EUROPE
RESULTS IMPACTED
BY WEATHER AND INFLATION
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
38
Volumes in Central & Eastern
Europe were impacted by bad
weather during the season,
inflation and the transfer of
the Kronenbourg 1664 licence
volume in the UK to Western
Europe.
the Export & License division.
Consequently, organic beer volume
development was -4.0%. Other
beverage volumes declined
organically by 4.2%, despite growth
of energy drinks in the eastern part
of the region.
Volumes were also impacted by the
termination of the Kronenbourg
1664 licensee agreement in the UK,
which was previously managed in
The volume decline in H2 was
more pronounced than in H1, as
volumes in H2 were impacted by
the Kronenbourg 1664 licensee
termination and less easy
comparables in Ukraine, because
volumes in Q1 2022 were severely
impacted by the outbreak of the war.
Organic revenue growth was
11.9% due to a significant increase
in revenue/hl of 17% thanks to price
increases in all markets and a
positive product mix despite pressure
on disposable income.
Despite significant increases in the
total cost base, including cost of
sales and marketing investments,
operating profit grew organically by
4.1%. Although the higher costs were
compensated for in absolute terms,
the operating margin contracted by
230bp to 17.2%.
MARKETS
UKRAINE
The health and safety of our
Ukrainian colleagues remain our first
priority as the country remains at
war.
Volume development during the year
varied significantly between quarters,
with strong volume growth in Q1 due
to comparables, as production
stopped in Q1 2022 following the
2022
Organic
Acq., net
FX
2023
Reported
Change
Change
Volumes (million hl)
Beer
Other beverages
Total volume
DKK million
Revenue
Operating profit
Operating margin (%)
29.1
3.6
32.7
11,679
2,282
19.5
-4.0%
-4.2%
-4.0%
11.9%
4.1%
0.9%
0.2%
0.8%
-
-
-
28.2
3.5
31.7
-3.1%
-4.0%
-3.2%
3.5%
-0.5%
-4.4%
-6.2%
12,959
2,224
17.2
11.0 %
-2.6%
-230bp
Markets
Ukraine
Belarus
Kazakhstan
Azerbaijan
The Baltics
Italy
Greece
Bulgaria
Croatia
Serbia
Our position
Market
position (no.)
Market
share¹ (%)
Our
operations
Breweries²
n.a.
1
1
1
n.a.
33
38
73
1-2
26-40
4
2
1
3
3
6
25
47
16
24
3
1
1
1
2
1
2
2
1
1
¹ YTD Sept. 2023. ² Breweries with capacity above 100,000 hl.
Source: Carlsberg estimates.
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
39
outbreak of the war, while volumes
in the remainder of the year were
impacted by the war, intensified
competition and bad weather in Q2.
Total volumes for the year were flat,
while revenue/hl benefited from
price increases and strong growth for
the premium and alcohol-free
portfolios.
SOUTH-EASTERN EUROPE
Volumes grew organically in Greece
and Serbia, but this was offset by
double-digit percentage volume
decline in Italy due to significant
price increases. We strengthened our
market share in all markets except
Italy, supported by strong growth for
our premium and alcohol-free
portfolios.
Revenue/hl increased by double-
digit percentages in all markets due
to price increases and a positive
brand mix.
THE BALTICS
Our volumes in the Baltic markets
were impacted by bad weather in
Q3, a challenging consumer
environment and our price increases.
Consequently, total volume decline
was mid-single-digit percentage. We
saw good growth for the alcohol-
free portfolio. The revenue/hl
increase was in the mid-teens.
EASTERN EUROPE
In Kazakhstan and Belarus, volumes
declined by low-single-digit
percentages.
In Kazakhstan, the volume decline
was the result of a challenging
consumer environment, while in
Belarus the volume development
was impacted by our price increases
in a highly promotional trading
environment. Revenue/hl increased
significantly due to very high price
increases.
EXPORT & LICENSE
Volumes in our Export & License
business were down by mid-single-
digit percentages impacted by the
Kronenbourg 1664 licensee
termination. We saw good growth
for 1664 Blanc, Carlsberg and
Brooklyn, but this was offset by
lower volumes for Somersby and
Tuborg.
UKRAINE
CONTINUED SUPPORT
Our Ukrainian colleagues have shown incredible strength and resilience, navigating the ongoing
humanitarian crisis and significant business challenges in another year marked by the terrible war.
To acknowledge the impressive work done by our people in Ukraine and confirm the Carlsberg
Group’s continued commitment to our local business there, Executive Vice President, Central &
Eastern Europe Lars Lehmann, travelled to Ukraine several times in 2023, where he met with
employees, visited breweries and on- and off-trade outlets, and held meetings with partners and
local authorities. Our continued investments in the business, including a new canning line, are further
confirmation of the Group’s commitment. Maintaining its focus on the SAIL’27 priorities, our team in
Ukraine managed to grow the premium portfolio by 12% and support the conversion of former
popular Russian brands into other brands, including Garage 0.0, which grew by 55%.
DRIVE VALUE AND BUILD SCALE IN CENTRAL & EASTERN EUROPE
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
40
RUSSIA
RUSSIA
On 28 March 2022, we
announced the decision to
seek a full divestment of our
Russian business following
Russia’s invasion of Ukraine.
On 23 June, Carlsberg announced
the conditional sale of Baltika
Breweries in Russia.
On 16 July, the Russian government
issued a presidential decree
temporarily transferring the
management of our Russian business
– Baltika Breweries – to the Russian
Federal Agency for State Property
Management. According to the
presidential decree, Carlsberg retains
title to the shares in Baltika
Breweries, but otherwise no longer
has any control or influence over the
management of the business.
As a result of the loss of control, the
investment was fully written down
and previous years’ accumulated
currency translation and hedging
losses were reclassified to the
income statement. The loss from the
discontinued operation in 2023
amounted to DKK 47,748m (2022:
loss of DKK 8,075m).
In October, we announced that we
had informed Baltika Breweries of
our termination of all licence
agreements enabling Baltika
Breweries to produce, market and
sell the Carlsberg Group’s products,
including international and regional
brands. There will be a limited run-
off period until 1 April 2024, during
which Baltika Breweries may use up
existing stock and materials.
We continue to take all possible
actions, including legal, to protect
assets and operations.
Read about the accounting
treatment and impact of the
deconsolidation of the Russian
business in section 5.1 of the
consolidated financial statements.
CARLSBERG GROUP ANNUAL REPORT 2023 2023 REVIEW AND 2024 EXPECTATIONS
41
2024 EARNINGS EXPECTATIONS
EARNINGS
EXPECTATIONS
2024 is the first year of
Accelerate SAIL, and we will
be stepping up investments in
support of our growth
priorities and enablers.
market investments in China and
Vietnam, premium brands in markets
across our regions, digital capability
projects and B2B e-commerce
(eB2B).
While the macroeconomic
environment and impact on
consumer behaviour remain
uncertain, inflationary pressure is
moderating. Consequently, we
expect a more moderate increase in
our total cost base than in previous
years. We intend to offset the higher
total costs/hl in absolute terms
through higher revenue/hl and
continued tight cost control.
To position the Group for successful
delivery of our increased long-term
growth ambitions, we will step up
commercial investments in 2024 in
alignment with Accelerate SAIL.
While keeping the ratio of SG&A to
revenue flat, we intend to increase
absolute sales and marketing
investments, the latter by more than
10%. The majority of the incremental
sales and marketing investments will
be allocated to brand and route-to-
Consequently, our earnings
expectations for 2024 are:
• Organic operating profit growth of
1-5%.
Based on the spot rates at 6
February, we assume a translation
impact on operating profit of around
DKK -100m for 2024.
Other relevant assumptions are:
• Financial expenses, excluding
foreign exchange losses or gains, of
DKK 1.1bn.
• Reported effective tax rate of
around 21%.
• Capital expenditure of around DKK
5bn, impacted by capacity
expansion in Asia, commercial
investments across the Group,
sustainability and digital
investments.
Forward-looking statements
Forward-looking statements are
subject to risks and uncertainties that
could cause the Group’s actual
results to differ materially from
those expressed in the forward-
looking statements. Accordingly,
forward-looking statements should
not be relied on as a prediction of
actual results. See page 57 for the
full forward-looking statements
notice.
Governance
CORPORATE GOVERNANCE
FOCUS ON
CORPORATE GOVERNANCE
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
42
members of the Remuneration
Committee were independent.
mitigates risks and protects our
reputation as a responsible brewer.
Our governance framework
aims to ensure value creation,
safeguard active and
transparent stewardship across
the Group and reduce risk.
The governing bodies of the
Carlsberg Group are the Supervisory
Board and the Executive Board.
None of the members of the
Supervisory Board are or have been
involved in the executive
management of the Group.
The Supervisory Board hires and
supervises the CEO and the CFO,
who are formally registered as
executive directors of the Company.
The CEO and CFO are not members
of the Supervisory Board.
The Executive Committee (ExCom)
includes the CEO, the CFO and a
wider group of Executive Vice
Presidents, portrayed on pages 54-
55. The Executive Committee
collectively prepares and implements
the Company’s strategic plans.
RECOMMENDATIONS ON
CORPORATE GOVERNANCE
The Supervisory Board is responsible
for the Company’s corporate
governance framework and
compliance with the Danish
corporate governance
recommendations and statutory
requirements.
The Company complies with
all but two of the current
recommendations:
• With respect to the recommendation
to publish quarterly reports, the
Group has chosen to only publish
full- and half-year reports.
• With respect to the recommendation
that a majority of the members of a
board committee should be
independent, in 2023 two of the
four members of the Nomination
Committee and two of the four
The Company’s statutory report on
corporate governance includes the
full list of recommendations, with
comments on the Group’s position on
each recommendation.
OUR COMPASS
The Supervisory Board is responsible
for overseeing that the Executive
Committee has an adequate system
and resources in place to ensure
compliance with the Company’s
codes and policies in relation to its
business activities.
The Company is dedicated to
conducting business with integrity in
a responsible, honest and ethical
manner. Living by these values – our
Compass – is an integrated part of
our strategy, Accelerate SAIL,
Download our statutory
report on corporate
governance
Download our policies
www.carlsberggroup.com/who-we-are/
corporate-governance/#statutoryreports
www.carlsberggroup.com/sustainability/
download/download-our-policies
Our Compass consists of a Code of
Ethics & Conduct and our Group
policies, which guide everyone in the
Group on everyday decisions and
actions, setting out the ethical
standards for our behaviour both
within the company and towards
external business partners such as
customers and suppliers.
Group policies include, but are not
limited to, anti-bribery & corruption,
labour & human rights, diversity,
equity & inclusion, competition law,
information security & acceptable
use, trade sanctions, data protection,
data ethics, risk management,
finance, marketing, corporate
communication, responsible drinking
and public & government affairs.
The ESG Report includes a thorough
description of how we implement
and live by our Compass in our day-
to-day actions, including areas such
as anti-bribery & corruption,
compliance and our Speak Up
system, as well as how we work with
and seek to ensure high standards
for data ethics as described in our
Data Ethics Policy.
THE ANNUAL GENERAL
MEETING
The 2023 Annual General Meeting
(AGM) took place on 13 March. The
minutes of the meeting are available
on www.carlsberggroup.com.
Rules and deadlines applying to the
AGM and other general meetings are
stipulated in the Company’s Articles
of Association, available on
www.carlsberggroup.com along with
other AGM-related information.
COMPOSITION OF THE
SUPERVISORY BOARD
The members of the Supervisory
Board and their board meeting
attendance are shown in the table on
page 43.
Download our ESG Report
www.carlsberggroup.com/reports-
downloads/carlsberg-group-2023-esg-
report/
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
43
The Supervisory Board currently has
eight members elected by the
General Meeting and, in accordance
with the Danish Companies Act, five
members elected by the employees.
Six of the eight members elected
by the General Meeting have an
international business background
and, in addition, competencies
related to FMCG, finance, ESG,
supply chain, procurement, mergers
& acquisitions, Carlsberg’s three key
regions and emerging markets.
Supervisory Board sees these
members as patrons of the same.
The other two members are affiliated
to the Carlsberg Foundation, the
Company’s largest shareholder, in
their capacity as members of the
Carlsberg Foundation Board, and
both have an academic background.
These members are bearers of the
Carlsberg Group culture and heritage
and the values stemming from our
founder, J.C. Jacobsen, and the
The employee representatives are
elected for a term of four years.
They have the same rights and
obligations as the members elected
by the General Meeting. The current
employee representatives were
elected in 2022 and the next election
will take place in 2026.
Information on the Supervisory
Board members is available on
pages 51-53. Detailed CVs can be
found on www.carlsberggroup.com.
and it has laid down the following
specific objectives in relation to
international experience and gender:
• With regard to international
DIVERSITY AND COMPETENCIES
The Supervisory Board recognises
the value and benefits of diversity in
respect of experience, culture,
international experience and gender.
Consequently, diversity is of high
priority for the Supervisory Board,
experience, the objective is that
50% or more of the Supervisory
Board members elected by the
General Meeting should have
substantial international experience
from managing large corporations
or institutions. The Supervisory
Board fulfils the objective regarding
international experience.
Chairship
meetings attended
Board
meetings attended
THE CARLSBERG FOUNDATION
Supervisory Board meetings
Board member
Henrik Poulsen1,2 (Chair)
Majken Schultz1 (Deputy Chair)
Hans Andersen3
Mikael Aro1,2
Carl Bache1
Magdi Batato1,2
Lilian Fossum Biner1,2
Richard Burrows1
Eva Vilstrup Decker3
Punita Lal1,2
Erik Lund3
Ivan Nielsen3
Olayide Oladokun3
Søren-Peter Fuchs Olesen1
Tenna Skov Thorsted3
1 Elected by the General Meeting. 2 Independent. 3 Employee-elected.
Attended meeting.
Not a Board member at the time.
Did not attend meeting (position of hop leaf does not represent actual meeting).
The Carlsberg Foundation is the Company’s largest shareholder.
According to its Charter, the Foundation must own shares equivalent
to at least 51% of the votes in Carlsberg A/S. At 31 December, the
Carlsberg Foundation held 29% of the capital and 77% of the votes in
Carlsberg A/S.
The Foundation is a long-term, value-oriented shareholder,
supporting the Group in creating sustainable value growth through the
execution of its strategy and adherence to the Company’s capital
allocation priorities.
The Foundation participates pro rata in the share buy-back
programmes. The dividends from Carlsberg A/S are given back to
society by granting funds to foster and support academic research
within natural sciences, humanities and social sciences, and funds for
cultural and socially beneficial purposes. The Foundation also grants
funds to the Carlsberg Research Laboratory. In 2023, dividends
received by the Foundation amounted to DKK 1.1bn.
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
44
• With regard to gender, the target
for the under-represented gender is
40% of the Supervisory Board
members elected by the General
Meeting. As per the Annual General
Meeting 2023, three of the eight
members (38%) elected by the
General Meeting are women. This
represents an equal distribution of
gender according to the Danish
rules on diversity in top
management.
The Supervisory Board constantly
considers how to best achieve as
diverse a representation as possible
in terms of views, culture, experience,
background, gender etc. and will
maintain the current targets in
relation to international experience
and gender.
As required by the Financial
Statements Act, section 99b, the
number of members of the
Supervisory Board and at other
management levels (as defined by
the Danish Companies Act), the
share of and targets for the under-
represented gender in the parent
company are shown in the table
below. As the table shows, we have
achieved our gender targets for the
Supervisory Board and other
management levels.
Driving diversity is a business priority,
but the scope of the Group’s work on
diversity is broader and more
comprehensive than what is defined
in the Danish Companies Act. The
Diversity, Equity & Inclusion Policy,
available on
www.carlsberggroup.com, sets out
the Group’s broader aspirations and
commitments to attract, develop and
retain people with different
perspectives, experiences and
backgrounds. See the 2023 ESG
Report for more information on how
Management and share of women, parent company, Carlsberg A/S
Supervisory Board
Total members¹
Share of women
Other management levels²
Total members
Share of women
2023
2024
Target
2027
8
38%
3
67%
40%
40%
30%
35%
¹ Elected by the Annual General Meeting ² Other management levels employed
by Carlsberg A/S in Denmark, as defined by the Danish Companies Act.
we work to promote diversity and
increase the number of women in
leadership positions across the
Group.
The skills and competencies that
should be represented on the
Supervisory Board are described in
the Specification of Competencies,
available on
www.carlsberggroup.com. On the
basis of a recommendation from the
People & Culture Committee
(previously Nomination Committee),
the Supervisory Board reviews the
Specification of Competencies
annually.
The Supervisory Board continuously
assesses, including as part of its
annual board evaluation, whether
the board members possess the
required skills and competencies to
best support the Carlsberg Group
and its strategy, and whether the
composition can be further optimised
for this purpose.
The Supervisory Board believes that
the current composition of the Board
ensures an appropriate level of skills,
breadth and diversity in the members’
approach to their duties, thereby
helping to ensure that decisions are
well considered and that both short-
and long-term perspectives are
taken into account.
SUPERVISORY BOARD
EVALUATION PROCESS
Each year, the Chair of the
Supervisory Board heads a structured
evaluation of the Board’s work,
accomplishments and competencies.
In 2023, the evaluation was
facilitated by an external
consultancy firm. The process
included online questionnaires,
mapping of board composition,
competencies, benchmarking, review
of various board materials and an
in-depth personal interview with
each board member and selected
executives.
The external consultancy firm
prepared an evaluation report, which
was discussed with the Board, and
each board member, the CEO and
the CFO received feedback on their
performance.
The overall conclusions of the
evaluation were that meetings are
well planned, prepared and
conducted with an open and
constructive dialogue, that board
members are professional, diligent,
knowledgeable and demonstrate
ability to adapt to a volatile world
and business landscape, and that the
Supervisory Board’s cooperation and
dialogue with the Executive
Management are characterised by
respect and trust.
The evaluation also resulted in a list
of ideas to improve the Board work
and an action plan with specific
initiatives for 2024. In addition to the
externally facilitated evaluation
process, the Chair had a one-to-one
conversation with each member of
the Board and ExCom.
THE WORK OF THE
SUPERVISORY BOARD
The main topics of discussion at the
Supervisory Board meetings in 2023
are presented in the box on page 45.
The CEO and CFO always attend the
Supervisory Board meetings and, in
order to ensure transparency, the
members of ExCom are also invited
and attend when relevant. This gives
the Supervisory Board better insight
into the business and exposure to the
full group of senior executives.
In connection with most Supervisory
Board meetings, key people from the
Group present a market, a function,
a specific risk or other relevant
topics.
BOARD COMMITTEES
The Supervisory Board has
established three board committees:
the People & Culture (previously
Nomination), the Remuneration and
the Audit Committee. Each year, the
Supervisory Board considers whether
the number and scope of the
committees are appropriate.
Committee members are appointed
for one year at a time. The members
of the respective committees and
their meeting attendance are shown
in the tables below and on page 46.
THE PEOPLE & CULTURE
COMMITTEE
The Terms of Reference for the
People & Culture Committee are
available on
www.carlsberggroup.com.
In 2023, the Committee had
particular focus on:
• Changing the name of the
Nomination Committee to the
People & Culture Committee to
reflect the expansion of the
Committee remit to cover a more
holistic, end-to-end Supervisory
Board approach to the Group's
people agenda.
• Planning the Board's evaluation
process, including selecting an
external provider.
• Reviewing the Specification of
Competencies for board members
to ensure that they reflect the skills
and experiences needed to best
support the execution of SAIL'27.
• Succession planning at management
and Supervisory Board level,
including nomination of Jacob
Aarup-Andersen as new Chief
Executive Officer to replace Cees 't
Hart.
• Evaluating the composition of
ExCom and the composition,
structure and size of the
Supervisory Board.
THE REMUNERATION COMMITTEE
The Terms of Reference for the
Remuneration Committee are
available on
www.carlsberggroup.com.
In 2023, the main activities of the
Remuneration Committee were:
• Finalising terms and conditions for
Jacob Aarup-Andersen as the new
People & Culture Committee meetings
Committee member
Henrik Poulsen1 (Chair)
Carl Bache
Richard Burrows
Punita Lal1
Majken Schultz
Committee meetings attended
1 Independent.
Attended meeting.
does not represent actual meeting).
Did not attend meeting (position of hop leaf
Not a Committee member at the time.
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
45
SUPERVISORY
BOARD 2023
MAIN TOPICS OF REVIEW AND
DISCUSSION
Strategy
• The impact, and the consequences for
employees and the business, of the war in
Ukraine and the Group's exit from Russia,
including the sale of the Russian business
on 23 June and the subsequent
presidential decree on 16 July announcing
the temporary transfer of the
management of the Russian business.
• SAIL'27 and its execution.
• The ESG programme Together Towards
ZERO and Beyond.
• R&D, innovation, brand portfolio and
branding initiatives, quality and other
strategic priorities.
• Organic growth opportunities, including
commercial priorities and three-year
plans.
• Inorganic growth opportunities.
• Selected market and function deep dives.
• Continued embedding of cost focus,
including the Operating Cost Management
toolkit.
• Capital structure, funding, dividend and
share buy-backs.
•
Organisation, people, succession planning
and talent management
• Supervisory Board composition.
• Succession planning for the executive
management, including the hiring of
Jacob Aarup-Andersen as new CEO.
• The Group's people agenda.
• The diversity, equity & inclusion agenda.
• The changing of the name of the
Nomination Committee to the People
& Culture Committee to reflect an
expansion of the Committee remit to
cover a more holistic, end-to-end
Supervisory Board approach to the
Group's people agenda.
• The update of the Remuneration
Policy for recommendation to the
AGM.
• Bonus structures in incentive
programmes, ensuring support of and
alignment with SAIL'27.
Governance, compliance and risk
management
• Review of the outcome of the 2022
Board evaluation process, including
follow-up on all suggestions in 2023.
• Externally facilitated board
evaluation.
• Compliance risks and set-up,
including discussion of compliance-
enhancing efforts.
• An enhanced enterprise risk
management approach and anchoring
of the same in the Board.
• Internal audit & control reports,
working processes and continued
improvement.
• The IT & cyber security strategy.
• Compliance with the upcoming EU
sustainability reporting regulation.
• Relevant issues and ways of working
with the external auditor.
• Approval of the external auditor for
election at the 2023 AGM.
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
46
Chief Executive Officer, effective 1
September 2023.
effect from the grant made in
2023.
• Ensuring a smooth transition from
Cees 't Hart to the new CEO and
approving the treatment of Cees'
terms and conditions in relation to
his retirement.
• Reviewing the Company's
Remuneration Policy to reflect both
stakeholder input and external best
practice. The revised policy will be
up for vote at the forthcoming
AGM.
• Moving ESG targets into the long-
term incentive scheme (LTI) with
• Increasing the revenue growth
targets in the long-term incentive
scheme to reflect our SAIL'27
ambition.
• Revising the total shareholder
return (TSR) peer group in the LTI
scheme to better reflect our most
direct global competitors.
The work of the Committee is
described in more detail in the
Remuneration Report, available on
www.carlsberggroup.com.
Remuneration Committee meetings
Committee member
Richard Burrows (Chair)
Magdi Batato1
Søren-Peter Fuchs Olesen
Henrik Poulsen1
1 Independent.
Attended meeting.
Audit Committee meetings
Committee member
Lilian Fossum Biner1 (Chair)
Mikael Aro1
Magdi Batato1
Richard Burrows
Committee meetings attended
Committee meetings attended
1 Independent.
represent actual meeting).
Attended meeting.
Did not attend meeting (position of hop leaf does not
THE AUDIT COMMITTEE
The Terms of Reference for the Audit
Committee are available on
www.carlsberggroup.com.
The Committee members have the
relevant financial expertise and
necessary experience of the
Company’s sector.
The Audit Committee works
according to the Terms of Reference
and a detailed annual meeting plan,
which is reviewed and approved by
the Supervisory Board prior to the
beginning of each financial year.
In 2023, the Audit Committee had
particular focus on a number of
areas, including:
• Monitoring the effectiveness of the
control environment and overseeing
the progress on improving and
further developing the effectiveness
of the controls over financial
reporting.
• Monitoring the external financial
reporting and accounting
judgements, including the
accounting treatment of Carlsberg's
Russian business and exit, as well as
the work of the external auditors.
• Monitoring the preparation for
implementing the new EU
sustainability reporting regulation.
• Reviewing the progress of the work
of the Group Internal Audit function.
• Reviewing the external financial
reporting, including the annual
reporting.
• Reviewing the work regarding
Speak Up matters.
• Managing financial risk.
• Reviewing the risk management
process.
• Receiving updates on Group tax.
• Reviewing succession planning for
financial personnel.
• Reviewing the Company's reporting
against the EU Taxonomy
Regulation for sustainable activities.
INTERNAL CONTROL AND RISK
MANAGEMENT RELATED TO
THE FINANCIAL REPORTING
PROCESS
OVERALL CONTROL ENVIRONMENT
The Supervisory Board and ExCom
have overall responsibility for the
Carlsberg Group’s internal control
environment.
The Audit Committee is responsible
for monitoring the effectiveness of
the overall internal control
environment and risk management
systems, in particular related to the
financial reporting process.
The Group has a number of policies
and procedures in key areas of
financial reporting, including the
Finance Policy, the Accounting
Manual, the Controller Manual, the
Use of Auditors Policy, the Chart of
Authority, the Risk Management
Policy, the Financial Risk
Management Policy, the Corporate
Governance Policy, the Information
Security & Acceptable Use Policy,
the Records Management &
Personal Data Protection Policy, the
Stock Exchange Compliance Policy,
the Tax Policy and the Code of
Ethics & Conduct.
The policies and procedures apply to
all subsidiaries, and similar
requirements are set out in
collaboration with the partners in
joint ventures.
The Group’s internal control
framework for financial reporting is
designed to reduce and mitigate
financial risks identified and ensure
reliable internal and external
financial reporting. It defines roles
and responsibilities and provides
assurance that key risks are covered
by internal control activities.
While systems and processes are not
standardised across all entities, all
entities are subject to the same set
of internal key controls.
The Group continuously seeks to
strengthen the internal control
environment through further
standardisation, increased
automation, strong analytics and
transparent governance.
The internal financial control
framework is monitored through
entities’ self-assessment of the
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
47
effectiveness of the implemented
controls and continuous testing of
performance by the Group’s Internal
Control function. The monitoring of
the performance of the controls
focuses on the adequacy of the
controls, their effectiveness and the
efficiency of the overall controlling
processes.
RISK ASSESSMENT
In the internal control framework for
financial reporting, the Group has
identified the risks that could have a
direct or indirect material impact on
the financial statements. Group
entities are required to carry out and
document the internal controls
defined by the Group to cover the
key risks identified.
All entities are required to reassess
the coverage and effectiveness of
their controls biannually and must
update changes to the control
framework for financial reporting,
including new risks and controls.
Furthermore, Group entities are
required to maintain mapping of risks
related to the segregation of duties
and implement necessary
compensating controls, thereby
continuously strengthening the
internal control environment and
enforcing optimal segregation of
duties in the ERP systems.
The segregation of duties within the
main ERP systems is continuously
monitored by the Group’s Internal
Control function.
CONTROL ACTIVITIES AND
MONITORING
The Group has implemented a
formalised financial reporting
process, budget process, estimates
and monthly reporting on actual
performance. The accounting
information reported by all Group
companies is reviewed by controllers
with regional or functional in-depth
knowledge of the individual
companies/functions and by
technical accounting specialists.
Controllers are continuously updated
on best practice relating to internal
financial controls, and trained in new
accounting and reporting
requirements.
The entities in the Group are
dependent on IT systems. Any
weaknesses in the system controls or
IT environment are compensated for
by manual controls to mitigate any
significant risk relating to the
financial reporting.
The quality of processes and
associated internal controls is subject
to continuous monitoring and testing
by the Group’s Internal Control
function as well as to regular internal
audits.
The Audit Committee’s monitoring
covers both the internal control
environment and business risk.
Monitoring of the internal control
environment is covered by the
Group’s control framework for
financial reporting.
The financial risks are assessed and
reviewed at multiple levels in the
Group, including monthly
performance review meetings at
ExCom level, periodic review of
control documentation, and audits
performed by Group Internal Audit.
GROUP INTERNAL AUDIT
Group Internal Audit provides
objective and independent
assessment of the adequacy,
effectiveness and quality of the
Group’s internal controls. Group
Internal Audit works in accordance
with a charter, which is reviewed
periodically and approved by the
Audit Committee.
Taking into account the annual
review of business risks (see pages
48-50), an internal audit plan is
drawn up for the year. The plan is
reviewed and approved by the Audit
Committee. In 2023, Group Internal
Audit conducted audits mainly in the
areas of key operational processes,
financial reporting controls, brewery
operations, compliance (internal and
external regulation) and information
technology.
In addition, Group Internal Audit
continuously assesses the adequacy
of actions implemented by
management to address previously
raised risks and control issues.
SPEAK UP
The Carlsberg Group has a Speak Up
system that enables employees to
report misconduct. Reports typically
relate to suspected violations of the
Carlsberg Code of Ethics & Conduct.
The Speak Up system is operated
by an external provider and allows
concerns to be brought to the
attention of the Group Speak
Up Review team anonymously,
confidentially and via multiple
channels. The EU Whistleblowing
Directive is currently under adoption
in relevant jurisdictions and our
system and process are being
adapted to it for full compliance.
The Speak Up Review team is
responsible for reviewing and
overseeing all reported Speak Up
matters. Furthermore, an Integrity
Committee, chaired by the CFO,
oversees the follow-up of major
Speak Up investigations and provides
a report to ExCom and the Audit
Committee at least quarterly.
The Speak Up Summary report
contains an overview of all open and
closed investigations during the
quarter and the time taken to resolve
cases.
The Speak Up Review Manual, which
clarifies how investigations should be
undertaken, is regularly updated to
reflect the most recent changes in
legislation and new tools used in
investigations.
In 2023, there was a relaunch of a
communication campaign to raise
awareness of the various Speak Up
channels available and the
importance of speaking up. In Q4
2022, a specific sexual harassment
awareness and prevention campaign
was launched. Similar campaigns will
be repeated every year.
Since the establishment of the Speak
Up system, some reports and their
subsequent investigation have led to
disciplinary sanctions, including
dismissal on the basis of violation of
the Code of Ethics & Conduct and/or
Group policies. The incidents have
not had any material impact on the
financial results of the Group.
More information regarding the
Speak Up system, including reported
concerns and disciplinary actions,
can be found in the ESG Report.
RISK MANAGEMENT
MANAGING
BUSINESS RISKS
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
48
In conducting our business and
executing our strategy, we
seek to manage risks in such a
way as to minimise the threats
they present.
Our business is subject to a number
of risks and uncertainties that could
have both short-term and long-term
implications for the Group.
The aim of our risk management
approach is to address these risks
and uncertainties in due time.
GOVERNANCE STRUCTURE
The Supervisory Board is ultimately
responsible for the risk management
framework and its effectiveness.
At least once a year, the Board
reviews the overall risk matrix. The
identified risks, including risk
development, are subsequently
monitored by the Supervisory
Board, ensuring that plans are in
place for managing the individual
risks, such as strategic, operational,
financial and compliance risks.
The Supervisory Board may choose
to delegate the monitoring of one
or more specific risks to a board
committee, which then reports back
to the Supervisory Board on
progress.
The Executive Committee (ExCom)
is responsible for reviewing the
overall risk exposure associated with
the Group’s activities and ensuring
that appropriate actions are taken.
RISK MANAGEMENT PROCESS
In 2023, we updated the Group’s risk
management process to ensure timely
identification and proactive
management of risks and
uncertainties throughout the year.
Risks are assessed according to a
two-dimensional heat map that
estimates the impact of the risk on
operating profit or brand/image and
the likelihood of the risk materialising.
The risks identified in the heat map
represent the most significant current
and emerging risks to the company
over the next 3-5 years.
The identification of current and
emerging risks is founded on a
systematic bottom-up/top-down
approach involving markets, regions
and functions. This is complemented
with external views, including
publicly available whitepapers from
leading organisations and
enterprises.
Local and functional risk assessment
workshops follow the same principles
and methodology as Group-level risk
assessment, and are held at
appropriate intervals, or as a
minimum on an annual basis.
Based on the risk assessment, risks
are assessed holistically by ExCom,
generally applying a time horizon of
up to five years, although some risks
may have a longer time horizon.
ExCom assigns risk owners, who are
responsible for mitigating the risks
through a programme of risk
management activities. Each key risk
is assigned to an ExCom member,
who assumes ultimate responsibility
for risk mitigation.
ExCom conducts half-yearly reviews
of the risk heat map and mitigation
plans, and also conducts a deep dive
into each risk at least once a year.
Top risks are presented to and
discussed with the Supervisory Board
at least once a year.
IDENTIFIED RISKS
The most significant current risks
identified are listed in the box below
and elaborated on in the following,
including in each case a description
of the risk and associated mitigation
efforts.
MOST SIGNIFICANT
CURRENT RISKS
• Economic instability/geopolitical tension
impacting our trading and operating
environment.
• Cybercriminal attack with severe financial,
regulatory and reputational consequences for
our business.
• Ability to take price increases being impacted
by political sensitivity and retailer resistance.
• Breach of or other non-compliance with laws
on competition, anti-bribery and corruption,
trade sanctions and data protection resulting in
significant fines or settlements as well as
reputational loss.
resulting in loss of sales and
customer dissatisfaction.
For climate-related risk reporting,
see our TCFD reporting on pages
28-29.
The risk movement paragraph
indicates whether the likelihood of
risk has increased, decreased or is
unchanged versus last year.
In addition to the risks described in
the following, other significant risks
identified included consumer boycott
following inappropriate advertising,
unfavourable changes in third-party
brand licence agreements, business
interruption in the supply chain
caused by health and safety issues,
breach of standards or lack of
processes, and stakeholder actions
against the Group due to lack of
progress on ESG matters negatively
impacting corporate and brand
reputation.
OTHER EMERGING AND LONG-
TERM RISKS
Significant potential long-term risks
with a time horizon over five years
are mostly associated with climate
change impact.
They include the introduction of a
cost of carbon initiative and other
regulatory initiatives, potentially
impacting profitability through
increased costs; physical operational
interruptions due to climate change
in the value chain, such as water
scarcity and/or water quality issues,
leading to production interruptions
and loss of sales; and storms or
flooding causing disruptions at the
breweries or in the supply chain,
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
49
ECONOMIC INSTABILITY/
GEOPOLITICAL TENSION
Risk movement
Unchanged versus last year.
Description
Across our regions, the
macroeconomic environment
is challenged by wars and an
increased level of global geopolitical
tensions. The wider impact of these
challenges may be economic
instability, inflation and recession,
which all pose a real risk to
consumer sentiment and disposable
incomes, possibly impacting beer
markets negatively. Geopolitical
tensions may also ultimately force
Carlsberg to exit, restructure or
change approach in certain markets.
Mitigation
Our strategic priorities are well
defined, and we will continue to
invest in and drive growth for our
premium brands, alcohol-free brews
and beverages in the Beyond Beer
category. As part of Accelerate SAIL,
we have defined the specific priorities
that we believe will generate volume
and value growth in the next 3-5
years.
Investing in these priorities will
strengthen our market positions in
growth markets, such as Vietnam
and India, and in mature markets in
Western Europe, supporting a more
balanced geographical exposure.
Our mainstream core beer accounts
for 59% of total volume, and this
portfolio of strong local power
brands acts as an attractive offering
in an environment where some
consumers may become more price-
sensitive.
We will also continue to leverage our
value management capabilities to
support the positive development in
revenue/hl.
In addition, our well-embedded and
rigorous Funding the Journey and
performance management culture
and transparency on costs through
our Operating Cost Management
(OCM) tool allow us to quickly
adapt to changes in the trading
environment, while our low financial
leverage and access to short-term
financing serve as protection during
financial uncertainty.
We monitor the global geopolitical
situation on an ongoing basis and
develop scenarios for intervention in
the event that tensions emerge or
further evolve. In our scenario
analyses, we apply lessons learned
from various geographies, including
the impact and consequences of the
situation in Russia since the outbreak
of the war.
CYBER AND IT SECURITY
Risk movement
Unchanged versus last year.
Description
Like all other businesses, the
Carlsberg Group relies heavily on
technology and IT infrastructure for
its day-to-day business. A cyber
attack or non-availability of IT
systems could have severe financial,
regulatory and reputational
consequences for our business.
Mitigation
Our Chief Information Security
Officer (CISO) leads an independent
cyber security function within our IT
organisation. The CISO coordinates
risk mitigation plans and activities
with ExCom and the Supervisory
Board.
As the cyber security threat
assessment has intensified in recent
years, we have strengthened our
protective work to counter the risk.
Furthermore, we deploy a wide array
of advanced defensive technologies,
as well as continuing to embed our
risk management framework in all
layers of the organisation. We
undertake regular testing of our
security controls via an ongoing
series of technological audits and
breach simulations.
While the threat landscape remains
difficult, especially with the latest
geopolitical challenges, we continue
to invest in improving our security
and mitigation activities.
for maintaining our gross margins,
we need to restore these in the
coming years to ensure sufficient
funds to invest in future profitable
growth.
ABILITY TO TAKE PRICE INCREASES
Risk movement
Decreased versus last year.
Description
Although at a lower rate than in
2023, we are expecting further
inflation in our cost base in 2024.
Political sensitivity and retailer
resistance to accepting price
increases on consumer goods pose a
risk for our ability to take price
increases to offset the cost inflation.
Mitigation
We will assess the need for price
increases market by market, taking
into consideration all internal cost
mitigation actions, the economic
situation in the given market, and
customers’ and consumers’ ability to
cope with price increases.
As part of this, we will leverage value
management to seek the right
promotional and packaging mix,
while also utilising the strength of
our brand portfolio, particularly our
strong local power brands in markets
where consumers are less resilient to
the inflationary pressure.
We will also be transparent in our
negotiations with retailers, providing
them with an understanding of the
total cost inflation impacting our
business. As price increases taken in
recent years have been insufficient
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
50
sanctioned entities and that
transactions are legal.
Mitigation
We continuously review and
strengthen the Group-wide control
framework covering legal compliance
areas, including, but not limited to,
competition law, anti-bribery &
corruption, trade sanctions and data
protection, to reflect areas of
increased regulatory focus.
We regularly review and, where
necessary, update relevant Group
legal and compliance policies, and
conduct compulsory training of all
relevant employees. In addition, we
have embedded the enhanced third-
party screening process, launched in
Q3 2022, to reduce bribery and
sanctions risks.
We actively set a strong tone from
the top and work with our managing
directors to communicate the
importance of compliance and how
to mitigate the areas of highest risk
in each market.
Read more about our compliance
efforts in the Living by our Compass
section of the ESG Report.
LEGAL AND REGULATORY
COMPLIANCE
Risk movement
Unchanged versus last year.
Description
Legal and regulatory compliance
risks include competition law and
data protection compliance (GDPR),
as well as non-compliance with
trade sanctions and anti-bribery &
corruption regulations. Failure to
comply with regulations and Group
policies may lead to fines, claims,
and brand and reputation damage.
In recent years, the Group has
experienced competition-law dawn
raids in a few jurisdictions. Non-
compliance with competition law
is a growing risk due to increased
regulatory enforcement and the
availability of leniency or a reduction
in fines for those who proactively
report breaches to the authorities.
The Group is party to certain ongoing
lawsuits and disputes. These and
their significance are described in
section 3.4 of the consolidated
financial statements.
The risk related to trade sanctions is
likely to persist, as sanctions
imposed on Russia are expected to
continue. The Group has continued
its enhanced screening requirements
to ensure that our counterparties,
banks and logistics operators are not
SUPERVISORY BOARD
SUPERVISORY
BOARD
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
51
HENRIK POULSEN
CHAIR
MAJKEN SCHULTZ
DEPUTY CHAIR
MIKAEL ARO
MAGDI BATATO
LILIAN FOSSUM BINER
RICHARD BURROWS
EVA VILSTRUP DECKER¹
PUNITA LAL
ERIK LUND¹
IVAN NIELSEN¹
OLAYIDE OLADOKUN¹
SØREN-PETER FUCHS OLESEN
TENNA SKOV THORSTED¹
¹ Employee representative.
HENRIK POULSEN
CHAIR (SINCE 2022)
Nationality: Danish
Year of birth: 1967
Appointed (until): 2021 (2024)
Shareholding (B shares): 3,056
(2022: 3,056)
Henrik Poulsen is Senior Advisor to
A.P. Moller Holding. He is Deputy
Chair of the Board of Directors, a
member of the Audit Committee and
Chair of the Remuneration
Committees of Novo Nordisk. He is
Chair of the Board of Directors and
Chair of the Nomination and
Remuneration Committee at Faerch,
and a member of the boards of
Directors of Novo Holdings and
Bertelsmann SE & Co.
Henrik Poulsen has extensive
executive and board experience in
large international companies,
significant financial knowledge and
in-depth knowledge of mergers and
acquisitions, strategy, risk
management, ESG, transformation
and innovation.
MAJKEN SCHULTZ
DEPUTY CHAIR (SINCE 2022)
Nationality: Danish
Year of birth: 1958
Appointed (until): 2019 (2024)
Shareholding (B shares): 150 (2022:
0)
Majken Schultz, PhD, is a Professor
at Copenhagen Business School and
Chair of the Board of Directors of the
Carlsberg Foundation. She is actively
involved in the Danish business
community in a variety of networks
and is a founder partner in the CBS
board education programme. She is
a member of the Danish Committee
on Foundation Governance.
Majken Schultz has substantial
experience and is consulted within
the areas of organisational culture,
identity and corporate branding. She
also has extensive board experience.
In addition to her analytical and
strategic capabilities, she has a
broad international network and
expertise.
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
52
Magdi Batato has international
experience and significant expertise
within procurement and supply chain
operations and efficiency, health &
safety and sustainability, including
environmental and human rights-
related matters. He has extensive
knowledge of emerging markets,
having held several positions across
Asia, the Middle East and Africa. In
addition, he has a broad
understanding of the assessment and
management of business risks.
LILIAN FOSSUM BINER
Nationality: Swedish
Year of birth: 1962
Appointed (until): 2019 (2024)
Shareholding (B shares): 350 (2022:
250)
Lilian Fossum Biner is a member of
the Board of Directors and of the
Audit Committee of Alfa Laval, a
member of the Board of Directors
and of the Audit Committee at
Pandora and a member of the Board
of Directors of Röko.
Lilian Fossum Biner has wide
experience from a range of
consumer-fronted industries. She
has substantial experience of
financial management and control,
strategic pricing, HR matters and
multiple brand strategy.
RICHARD BURROWS
Nationality: Irish
Year of birth: 1946
Appointed (until): 2009 (2024)
Shareholding (B shares): 2,040
(2022: 2,040)
Richard Burrows has extensive
experience of the branded consumer
goods sector and wide international
business experience. He also has a
deep understanding of shareholder
and investor relations, and the
assessment and mitigation of
business risks, and he has worked
extensively with developing markets
and product innovation. In addition,
he has substantial experience of
financial management and reporting
processes.
EVA VILSTRUP DECKER¹
Nationality: Danish
Year of birth: 1964
Appointed (until): 2014 (2026)
Shareholding (B shares): 68 (2022:
68)
Eva Vilstrup Decker is Senior Director
Customer Service & Sourcing,
Carlsberg Breweries A/S. She is an
employee representative on the
Board of Carlsberg Breweries A/S.
MIKAEL ARO
Nationality: Finnish
Year of birth: 1965
Appointed (until): 2022 (2024)
Shareholding (B shares): 0 (2022: 0)
Mikael Aro is Senior Industry Adviser
in the private equity firm Triton. He is
Chair of the Board of Directors of
Kojamo, Caverion, Glamox AS, Geia
Foods AS, Flokk AS and Esperi Care
Oy, and a member of the Board of
Directors of Habeo Group. He is
Chair of the Remuneration
Committee at Kojamo and Chair of
the Audit Committee at Caverion.
Mikael Aro has strong experience of
the branded beverage sector. He has
significant financial knowledge and
in-depth knowledge of mergers and
acquisitions, business development,
logistics, sales and marketing.
MAGDI BATATO
Nationality: Swiss
Year of birth: 1959
Appointed (until): 2018 (2024)
Shareholding (B shares): 401 (2022:
201)
Magdi Batato is Chair of the IDH
board (an NGO specialised in
farmers’ livelihoods and overall
sustainable value chains), executive
in residence at the IMD Business
School, Senior Advisor with the
Boston Consulting Group and
Advisor on the board of o9.
PUNITA LAL
Nationality: Indian
Year of birth: 1962
Appointed (until): 2022 (2024)
Shareholding (B shares): 0 (2022: 0)
Punita Lal has over 30 years of
experience in the consumer packaged
goods industry within the areas of
strategy, marketing and leadership.
She is a member of the Board of
Directors and a member of the Audit,
Compensation & Management
Development and Nominating
Committees of DBS Group Bank and
a member of the Board of Directors
Chair of the Nomination &
Remuneration Committee and a
member of the Corporate Social
Responsibility Committee of Cipla.
Punita Lal’s broad experience spans
multiple disciplines, geographies and
cultures, particularly in Asia. She has
strong commercial acumen backed
by insights, with deep expertise in
the areas of branding, consumer
behaviour, product development and
portfolio management in the
beverage space.
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
53
ERIK LUND¹
Nationality: Danish
Year of birth: 1964
Appointed (until): 2015 (2026)
Shareholding (B shares): 54 (2022:
54)
SØREN-PETER FUCHS OLESEN
Nationality: Danish
Year of birth: 1955
Appointed (until): 2012 (2024)
Shareholding (B shares): 652 (2022:
652)
TENNA SKOV THORSTED¹
Nationality: Danish
Year of birth: 1993
Appointed (until): 2022 (2026)
Shareholding (B shares): 30 (2022:
11)
are/about-the-carlsberg-
group/supervisory-board/
Erik Lund is Head Brewer at
Carlsberg Research Laboratory.
IVAN NIELSEN¹
Nationality: Danish
Year of birth: 1964
Appointed (until): 2023 (2026)
Shareholding (B shares): 0 (2022: 0)
Ivan Nielsen is a brewery worker at
Carlsberg Supply Company Danmark
A/S, where he is an employee
representative on the Board.
OLAYIDE OLADOKUN¹
Nationality: British
Year of birth: 1986
Appointed (until): 2022 (2026)
Shareholding (B shares): 0 (2022: 0)
Olayide Oladokun is a Project Leader
at the Carlsberg Research Laboratory.
Søren-Peter Fuchs Olesen,
Professor, DMSc, is CEO of the
Danish National Research
Foundation. Søren-Peter Fuchs
Olesen is a member of the Board of
Directors of the Carlsberg
Foundation, property companies
affiliated to the Carlsberg
Foundation and the Carlsberg
Research Laboratory. He is Chair of
the evaluation committees for
visiting scientists at Danmarks
Nationalbank and the Nordea
Foundation.
Søren-Peter Fuchs Olesen has
substantial experience of managing
knowledge organisations, turning
basic science into new products,
innovation, planning, funding,
investor relations and CSR.
Tenna Skov Thorsted is Senior
Sustainability Manager at Carlsberg
Danmark A/S. She is an employee
representative on the Board of
Carlsberg Danmark A/S.
¹ Employee representative.
The Supervisory Board members’ full
CVs, including their skills and
competencies, are available online at
www.carlsberggroup.com/who-we-
EXECUTIVE COMMITTEE
OUR SENIOR
MANAGEMENT TEAM
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
54
JACOB AARUP-ANDERSEN
GROUP CEO
ULRICA FEARN
CFO
Nationality: Danish
Year of birth: 1977
Appointed to ExCom: 2023
Nationality: Swedish
Year of birth: 1973
Appointed to ExCom: 2023
JOÃO ABECASIS
EXECUTIVE VICE PRESIDENT,
ASIA
Nationality: Portuguese
Year of birth: 1972
Appointed to ExCom: 2019
SØREN BRINCK
EXECUTIVE VICE PRESIDENT, GROUP
COMMERCIAL AND STRATEGY
Nationality: Danish
Year of birth: 1974
Appointed to ExCom: 2021
GRAHAM FEWKES
EXECUTIVE VICE PRESIDENT,
WESTERN EUROPE
Nationality: British
Year of birth: 1968
Appointed to ExCom: 2014
Jacob joined Carlsberg on 1
September 2023. Prior to joining
Carlsberg, Jacob served as CEO of
ISS, a global leader in facility
management with 350,000
employees operating in 60 countries
globally. Prior to ISS, he had
executive leadership roles at Danske
Bank and Danica Pension. Before
that, Jacob worked as an investment
professional in firms including TPG-
Axon Capital and Goldman Sachs.
Jacob is a member of the Board of
Directors of SEB Group.
Ulrica joined the Carlsberg Group on
1 January 2023. Before joining
Carlsberg, Ulrica was CFO of
Equinor, Norway. Prior to Equinor,
she was Director, Group Finance at
BT Group. She began her career at
Diageo, where she spent almost 20
years in various senior finance and
other management roles across
Europe, APAC and the USA. Ulrica is
a member of the Board of Directors
of Capgemini.
João joined the Carlsberg Group in
2011 as CCO and later CEO of Super
Bock, our associate in Portugal. In
2016, he became Vice President for
smaller markets in the Western
Europe region. He has also served as
interim Managing Director of
Carlsberg Danmark. In 2017, he
became Managing Director of our
French business, Kronenbourg. He
became CCO and a member of
ExCom in 2019. Earlier in his career,
João held a range of sales and
marketing roles at Unilever.
Søren joined Carlsberg’s commercial
team in 2005. During his career at
Carlsberg, he has held various
management positions at Group,
regional and market level. From
2009 to 2019, he was Managing
Director in Denmark, Norway and
Greece, and after that he was SVP,
Asia. Before joining Carlsberg, Søren
worked as a consultant at Accenture
and was a manager at Arla Foods.
Graham joined the Carlsberg Group
as Vice President Commercial, Asia
in 2008, before becoming SVP of
Group Sales, Marketing & Innovation
in 2014. Prior to his current role, he
served as EVP, Asia from 2015 to
2021. Graham has strong experience
in the global drinks business, having
served in a wide range of
international sales and marketing
roles for Grand Metropolitan plc,
Foster’s Brewing Group and S&N plc.
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
55
LARS LEHMANN
EXECUTIVE VICE PRESIDENT,
CENTRAL & EASTERN EUROPE
Nationality: Danish
Year of birth: 1966
Appointed to ExCom: 2019
VICTOR SHEVTSOV
EXECUTIVE VICE PRESIDENT,
SUPPLY CHAIN
Nationality: Russian
Year of birth: 1970
Appointed to ExCom: 2021
Lars joined the Carlsberg Group in
2003 as Commercial Development
Director. Since then, he has held
several management positions,
including VP, Commercial for Eastern
Europe & BBH and head of Export,
License & Duty Free. In 2016, he
became Managing Director of
Carlsberg Malaysia. Prior to joining
Carlsberg, Lars was with Action
Nordic and Unilever Denmark.
Victor joined Carlsberg from PepsiCo
in 2015 as Vice President for our
supply chain in Asia. Victor’s solid
end-to-end supply chain expertise
has been accrued through various
supply chain roles, including several
operative and strategy roles within
supply chain across Europe and Sub-
Saharan Africa during his 20 years
with PepsiCo. Prior to PepsiCo, Victor
worked for Siemens.
SHARE INFORMATION
INFORMATION
FOR SHAREHOLDERS
CARLSBERG GROUP ANNUAL REPORT 2023 GOVERNANCE
56
Carlsberg A/S is listed on
Nasdaq Copenhagen. The
Company has around 56,000
registered shareholders.
The Company has two share classes:
Carlsberg A and Carlsberg B. An A
share carries 20 votes, while a B
share carries two votes and is
entitled to a preferential dividend.
The B share is included in the
Nasdaq OMX Nordic Large Cap and
OMXC20 blue-chip indices.
As a supplement to its Copenhagen
listing, the Company has established
a sponsored level 1 ADR (American
Depository Receipt) programme with
J.P. Morgan. The ADRs trade over-
the-counter in the USA under the
symbol CABGY. More information on
the ADR programme is available on
our investor website.
MAJOR SHAREHOLDERS
At 31 December 2023, the
Company’s largest shareholder was
CARLSBERG B SHARE 2023
(DKK)
SHAREHOLDER GEOGRAPHIC
SPLIT (excluding the Carlsberg
Foundation and treasury shares)
the Carlsberg Foundation with 29%
of the capital and 77% of the votes.
In accordance with section 29 of the
Danish Securities Trading Act,
Massachusetts Financial Services
Company (Boston, USA) has notified
Carlsberg that it owns more than 5%
of the share capital.
SHAREHOLDER RETURN
The Carlsberg Group’s dividend policy
stipulates an adjusted payout ratio of
around 50%. In addition, the Company
conducted share buy-backs
amounting to DKK 3.2bn in 2023.
For more information, see page 10.
INVESTOR RELATIONS
The Carlsberg Group aims to give
shareholders and the market the
best possible insight into factors
considered relevant for ensuring
market-efficient and fair pricing of
the Company’s shares. This is
achieved through the quality,
consistency and continuity of the
information provided to the market,
which is handled by the Group’s
Investor Relations department.
We observe a four-week silent
period prior to the publication of the
annual and half-year reports, and a
two-week silent period prior to the
Q1 and Q3 trading statements.
GROUP WEBSITE
www.carlsberggroup.com provides
comprehensive information about
the Group and its shares and bonds,
including Company announcements,
annual and half-year financial
statements and quarterly trading
statements, share prices and
financial data, investor presentations,
webcasts and transcripts, and a
financial and event calendar.
At the end of 2023, a total of
29 brokers had coverage of the
Company. The analysts’ names
and consensus estimates can be
found on the website.
1,200
1,100
1,000
900
800
700
600
n
a
J
b
e
F
r
a
M
r
p
A
y
a
M
n
u
J
l
u
J
g
u
A
p
e
S
t
c
O
v
o
N
c
e
D
Other
20%
DK
17%
UK
13%
US
50%
Share information
Number of issued shares¹
Number of issued shares,
excl. treasury shares¹
Carlsberg Foundation
Votes per share
Par value
Share class
A
B
Total
33,699,252
103,657,554
137,356,806
33,699,252
100,415,064
134,114,316
33,073,534
7,350,384
40,423,918
20
2
DKK 20
DKK 20
Share price, year-end
DKK 1,120.0
DKK 846.8
Proposed dividend per share
DKK 27.0
DKK 27.0
¹ At 31 December 2023.
Financial calendar 2024
Event
Annual General Meeting
Q1 trading statement
H1 interim financial
statement
Q3 trading statement
Date
11 March
30 April
14 August
31 October
Forward-looking statements
CARLSBERG GROUP ANNUAL REPORT 2023 FORWARD-LOOKING STATEMENTS
57
FORWARD-LOOKING
STATEMENTS AND ESEF
This Annual Report contains
forward-looking statements,
including statements about the
Group’s sales, revenues, earnings,
spending, margins, cash flow,
inventory, products, actions, plans,
strategies, objectives and guidance
with respect to the Group's future
operating results.
Forward-looking statements include,
without limitation, any statement
that may predict, forecast, indicate
or imply future results, performance
or achievements, and may contain
the words “believe, anticipate,
expect, estimate, intend, plan,
project, will be, will continue, will
result, could, may, might”, or any
variations of such words or other
words with similar meanings.
Any such statements are subject to
risks and uncertainties that could
cause the Group’s actual results to
differ materially from the results
discussed in such forward-looking
statements.
Prospective information is based on
management’s then current
expectations or forecasts. Such
information is subject to the risk that
such expectations or forecasts, or the
assumptions underlying such
expectations or forecasts, may
change.
The Group assumes no obligation to
update any such forward-looking
statements to reflect actual results,
changes in assumptions or changes in
other factors affecting such forward-
looking statements.
Some important risk factors that
could cause the Group’s actual results
to differ materially from those
expressed in its forward-looking
statements include, but are not
limited to: economic and geopolitical
uncertainty (including interest rates
and exchange rates), financial and
regulatory developments, demand
for the Group’s products, increasing
industry consolidation, competition
from other breweries, the availability
and pricing of raw materials and
packaging materials, cost of energy,
production- and distribution-related
issues, information technology
failures, breach or unexpected
termination of contracts, market-
driven price reductions, market
acceptance of new products, changes
in consumer preferences, launches of
rival products, stipulation of fair
value in the opening balance sheet of
acquired entities, litigation,
environmental issues and other
unforeseen factors.
New risk factors can arise, and it
may not be possible for management
to predict all such risk factors, nor to
assess the impact of all such risk
factors on the Group’s business or
the extent to which any individual
risk factor, or combination of factors,
may cause results to differ materially
from those contained in any forward-
looking statement.
Accordingly, forward-looking
statements should not be relied on
as a prediction of actual results.
ESEF data
Domicile of entity
Description of nature of entity’s operations and principal
activities
Country of incorporation
Principal place of business
Legal form of entity
Denmark
Brewing company
Denmark
Global
A/S
Name of reporting entity or other means of identification
Carlsberg A/S
Address of entity's registered office
Phone number
Corporate website
CVR No.
1 J. C. Jacobsens Gade
1799 Copenhagen V
+45 3327 3300
www.carlsberggroup.com
61056416
Consolidated financial statements
CONSOLIDATED
FINANCIAL STATEMENTS
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
58
CONSOLIDATED FINANCIAL
STATEMENTS
Income statement ................................... 59
Statement of comprehensive
income ......................................................... 59
Statement of financial position ......... 60
Statement of changes in equity ........ 61
Statement of cash flows ...................... 62
Notes ............................................................ 63
PARENT COMPANY FINANCIAL
STATEMENTS
Statements .............................................. 133
Notes ......................................................... 136
REPORTS
Management statement ................... 143
Auditor’s reports ................................... 144
SECTION 1
OPERATING ACTIVITIES
1.1 Segmentation of operations ..................65
1.2 Operating expenses and
inventories....................................................68
1.3 Foreign exchange risk related to
earnings ........................................................70
1.4 Cash flow from operating
activities ........................................................71
1.5 Trade and other receivables ..................72
SECTION 2
ASSET BASE AND RETURNS
2.1 Segmentation of assets and
returns ...........................................................76
2.2 Impairment ..................................................77
2.3 Intangible assets and property,
plant and equipment ................................82
SECTION 3
SPECIAL ITEMS, PROVISIONS AND
OTHER LIABILITIES
3.1 Special items ...............................................86
3.2 Provisions .....................................................87
3.3 Other liabilities ...........................................88
3.4 Contingent liabilities .................................88
SECTION 4
FINANCING COSTS, CAPITAL
STRUCTURE AND EQUITY
4.1 Financial income and expenses ............91
4.2 Financial assets and liabilities ...............92
4.3 Net interest-bearing debt .......................92
4.4 Capital structure ........................................92
4.5 Borrowings and cash................................95
4.6 Interest rate risk .........................................96
4.7 Foreign exchange risk related to
net investments and financing
activities ........................................................97
4.8 Funding and liquidity risk ........................99
4.9 Derivative financial instruments......... 101
SECTION 7
STAFF COSTS AND REMUNERATION
7.1 Staff costs ................................................. 114
7.2 Remuneration .......................................... 115
7.3 Share-based payments ........................ 115
7.4 Retirement benefit obligations
and similar obligations ......................... 117
SECTION 8
OTHER DISCLOSURE REQUIREMENTS
8.1 Earnings per share ................................. 120
8.2 Fees to auditors ...................................... 121
8.3 Related parties ........................................ 121
8.4 Events after the reporting period ...... 121
SECTION 5
DISCONTINUED OPERATIONS,
ACQUISITIONS, DISPOSALS AND
ASSOCIATES
5.1 Discontinued operations ....................... 103
5.2 Investment model and risks ................ 106
5.3 Acquisitions and disposals ................... 107
5.4 Contingent considerations ................... 109
5.5 Associates ................................................. 110
SECTION 6
TAX
6.1 Income tax ................................................ 111
6.2 Tax assets and liabilities ...................... 113
SECTION 9
BASIS FOR PREPARATION
9.1 Significant accounting estimates
and judgements ...................................... 122
9.2 General accounting policies ................ 122
9.3 Changes in accounting policies .......... 126
9.4 New legislation ....................................... 126
9.5 New segmentation 2024 ..................... 127
SECTION 10
GROUP COMPANIES
10 Group companies.................................... 129
¹ The segmented quarterly information on page 128 is
.
part of the Management review.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
59
INCOME STATEMENT
STATEMENT OF COMPREHENSIVE INCOME
DKK million
Revenue
Cost of sales
Gross profit
Sales and distribution expenses
Administrative expenses
Other operating activities, net
Share of profit after tax of associates
Operating profit before special items
Special items, net
Financial income
Financial expenses
Profit before tax
Income tax
Profit from continuing operations
Loss from discontinued operations¹
Profit for the period
Attributable to
Non-controlling interests
Shareholders in Carlsberg A/S (net profit)
DKK
Earnings per share
Earnings per share of DKK 20 (EPS)
Continuing operations
Discontinued operations
Diluted earnings per share of DKK 20 (EPS-D)
Continuing operations
Discontinued operations
2023
73,585
-40,753
32,832
-18,355
-4,077
124
581
11,105
-431
695
-1,539
9,830
-1,859
7,971
-47,748
-39,777
2022
DKK million
70,265
-38,198
32,067
-17,337
-4,229
68
901
Profit for the period
Other comprehensive income
Retirement benefit obligations
Income tax
Items that will not be reclassified to the income statement
Foreign exchange adjustments of foreign entities
11,470
Fair value adjustments of hedging instruments
-784
347
-1,072
9,961
-1,778
8,183
Income tax
Items that will be reclassified to the income statement
Other comprehensive income
Total comprehensive income
Attributable to
-8,075
Non-controlling interests
108
Shareholders in Carlsberg A/S
Total comprehensive income for the period arises from
1,011
-40,788
1,171
Continuing operations
-1,063
Discontinued operations
Total comprehensive income
Section
2023
-39,777
2022
108
7.4
6.1
4.1
4.1
6.1
-73
-28
-101
37,781
920
-44
38,657
38,556
-1,221
753
-1,974
6,297
-7,518
-1,221
586
-73
513
-3,926
-759
100
-4,585
-4,072
-3,964
603
-4,567
6,944
-10,908
-3,964
Section
1.1
1.2.1
1.2.2
1.2.3
5.5
3.1
4.1
4.1
6.1
5.1
1.1
8.1
-299.7
51.1
-350.8
-299.7
51.0
-350.8
-7.6
50.1
-57.7
-7.6
50.0
-57.7
¹ The discontinued operation in Russia was deconsolidated as of July 2023, cf. section 5.1.
STATEMENT OF FINANCIAL POSITION
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
60
DKK million
ASSETS
Non-current assets
Intangible assets
Property, plant and equipment
Investments in associates
Receivables
Tax assets
Total non-current assets
Current assets
Inventories
Trade receivables
Tax receivables
Other receivables
Prepayments
Deposits and securities
Cash and cash equivalents
Current assets
Assets in discontinued operations¹
Total current assets
Total assets
Section
31 Dec. 2023
31 Dec. 2022
DKK million
Section
31 Dec. 2023
31 Dec. 2022
2.2, 2.3
2.2, 2.3
5.5
1.5
6.2
1.2.1
1.5
1.5
4.5.2
4.5.2
5.1
EQUITY AND LIABILITIES
Equity
Share capital
Reserves
Retained earnings
Equity, shareholders in Carlsberg A/S
Non-controlling interests
49,100
24,405
5,437
881
1,810
49,223
23,679
5,523
936
1,731
81,633
81,092
Total equity
5,811
5,102
356
2,476
835
2,236
13,382
30,198
-
30,198
111,831
5,718
5,067
Non-current liabilities
Borrowings
Retirement benefit obligations
214
Tax liabilities
2,505
964
Provisions
Other liabilities
-
Total non-current liabilities
8,163
22,631
11,618
34,249
115,341
Current liabilities
Borrowings
Trade payables
Deposits on returnable packaging materials
Provisions
Tax payables
Other liabilities
Current liabilities
Liabilities in discontinued operations¹
Total current liabilities
Total liabilities
Total equity and liabilities
4.4.3
2,747
-2,819
23,306
23,234
2,515
25,749
4.3, 4.5.1
30,763
7.4
6.2
3.2
3.3
4.3, 4.5.1
3.2
3.3
5.1
1,387
4,823
1,565
314
38,852
8,338
22,159
1,717
944
1,052
13,020
47,230
-
47,230
86,082
111,831
2,837
-41,711
70,776
31,902
2,820
34,722
22,865
1,557
4,841
2,304
305
31,872
5,781
21,917
1,627
807
1,012
13,503
44,647
4,100
48,747
80,619
115,341
¹ The discontinued operation in Russia was deconsolidated as of July 2023, cf. section 5.1.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
61
STATEMENT OF CHANGES IN EQUITY
DKK million
2023
Equity at 1 January
Profit for the period
Other comprehensive income
Total comprehensive income for the period
Cancellation of treasury shares
Share-based payments
Dividends paid to shareholders
Share buy-back
Non-controlling interests
Total changes in equity
Equity at 31 December
Section
Shareholders in Carlsberg A/S
4.4.4
4.4.2
7.3
4.4.3
4.4.3
Share
capital
Currency
translation¹
Hedging
reserves¹
Total
reserves
2,837
-40,889
-
-
-
-90
-
-
-
-
-
38,250
38,250
-
-
-
-
-
-822
-
642
642
-
-
-
-
-
-41,711
-
38,892
38,892
-
-
-
-
-
-90
2,747
38,250
-2,639
642
-180
38,892
-2,819
Retained
earnings
70,776
-40,788
-78
-40,866
90
129
-3,695
-3,200
72
-47,470
23,306
Non-
controlling
interests
2,820
1,011
-258
753
-
1
-1,149
-
90
-305
2,515
Total
31,902
-40,788
38,814
-1,974
-
129
-3,695
-3,200
72
-8,668
23,234
Total
equity
34,722
-39,777
38,556
-1,221
-
130
-4,844
-3,200
162
-8,973
25,749
¹ Prior to the deconsolidation of the discontinued operation in Russia, the related accumulated currency translation and hedging reserves within equity represented losses of DKK 40.9bn and DKK 0.5bn respectively (31 December 2022: losses of
DKK 39.7bn and DKK 0.6bn). Following the deconsolidation, the amounts were reclassified from equity to the income statement and included in loss from discontinued operations.
DKK million
2022
Equity at 1 January
Profit for the period
Other comprehensive income
Total comprehensive income for the period
Cancellation of treasury shares
Share-based payments
Dividends paid to shareholders
Share buy-back
Non-controlling interests
Total changes in equity
Equity at 31 December
Section
Shareholders in Carlsberg A/S
4.4.4
4.4.2
7.3
4.4.3
4.4.3
Share
capital
Currency
translation
Hedging
reserves
2,905
-37,198
-
-
-
-68
-
-
-
-
-
-3,691
-3,691
-
-
-
-
-
-493
-
-329
-329
-
-
-
-
-
Total
reserves
-37,691
-
-4,020
-4,020
-
-
-
-
-
-68
2,837
-3,691
-40,889
-329
-822
-4,020
-41,711
Retained
earnings
80,283
-1,063
516
-547
68
97
-3,389
-4,400
-1,336
-9,507
70,776
Non-
controlling
interests
3,259
1,171
-568
603
-
-
-1,042
-
-
-439
2,820
Total
45,497
-1,063
-3,504
-4,567
-
97
-3,389
-4,400
-1,336
-13,595
31,902
Total
equity
48,756
108
-4,072
-3,964
-
97
-4,431
-4,400
-1,336
-14,034
34,722
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
62
STATEMENT OF CASH FLOWS
DKK million
Operating profit before special items
Depreciation, amortisation and impairment losses
Operating profit before depreciation, amortisation and impairment losses
Section
2.3
Other non-cash items
Change in trade working capital
Change in other working capital
Restructuring costs and other special items paid
Interest etc. received
Interest etc. paid
Income tax paid
Cash flow from operating activities
Acquisition of property, plant and equipment and intangible assets
Disposal of property, plant and equipment and intangible assets
Change in on-trade loans
Total operational investments
Free operating cash flow
Acquisition and disposal of subsidiaries, net
Acquisition and disposal of associates, net
Acquisition and disposal of financial investments, net
Change in financial receivables
Dividends received
Total financial investments
Cash flow from investing activities
Free cash flow
Shareholders in Carlsberg A/S
Share buy-back
Non-controlling interests
External financing
Cash flow from financing activities
Net cash flow from continuing operations
Net cash flow from discontinued operations¹
Net cash flow
Cash and cash equivalents at 1 January
Cash and cash equivalents included in discontinued operations at 1 January
Foreign exchange adjustment of cash and cash equivalents
Cash and cash equivalents included in discontinued operations
1.4
2.3
1.5
5.3
5.3
4.5.2
4.4.3
4.4.3
4.4.3
4.5.1
5.1
2023
11,105
4,074
15,179
-499
698
-780
-552
329
-602
-2,166
11,607
-4,243
115
-10
-4,138
7,469
-822
-7
-2,248
-26
512
-2,591
-6,729
4,878
-3,695
-3,200
-1,106
9,371
1,370
6,248
-994
5,254
8,163
1,194
-1,229
-
Cash and cash equivalents at 31 December
4.5.2
13,382
¹ The discontinued operation in Russia was deconsolidated as of July 2023, cf. section 5.1.
2022
11,470
4,187
15,657
-867
1,908
-465
-171
213
-1,223
-2,103
12,949
-4,018
414
129
-3,475
9,474
-
-48
-20
196
282
410
-3,065
9,884
-3,389
-4,400
-1,042
-1,128
-9,959
-75
1,771
1,696
8,344
-
-683
-1,194
8,163
SECTION 1
OPERATING
ACTIVITIES
73.6bn
REVENUE (DKK)
Revenue grew by 4.7% to DKK 73,585m (2022:
DKK 70,265m). Revenue growth was primarily
driven by price increases across markets, taken
in order to offset the significant cost increases,
and supported by a positive product mix.
The negative currency impact related in
particular to the Chinese, Laotian, Indian,
Ukrainian, Norwegian and Swedish currencies.
The acquisition impact related to the acquisition
of Waterloo Brewing in Canada.
REVENUE DEVELOPMENT (%)
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
63
44.6%
GROSS MARGIN
Although gross profit/hl increased by 3%, the
gross margin declined by 100bp to 44.6% due
to increased cost of sales from higher input and
energy costs and higher salaries.
11.1bn
OPERATING PROFIT (DKK)
Operating expenses increased by 4% due to
increased marketing and sales investments,
while administrative expenses declined. Total
operating expenses as a percentage of revenue
declined by 20bp.
The share of profit after tax of associates
declined by DKK 320m, mainly due to lower
property income in Carlsberg Byen and certain
one-off expenses in associates in Asia.
Operating profit before depreciation,
amortisation and impairment losses (EBITDA)
declined by 3.1% to DKK 15,179m. The EBITDA
margin declined by 170bp to 20.6%, impacted
by the lower gross margin, higher operating
expenses and currencies.
Group operating profit declined by 3.2% to DKK
11,105m, again due to the negative currency
impact, which offset the organic growth of
5.2%. The currency impact primarily related to
the Chinese, Laotian, Ukrainian and Norwegian
currencies.
The operating margin declined by 120bp
to 15.1%, mainly due to the lower gross margin
and increased marketing investments.
OPERATING PROFIT DEVELOPMENT (DKKbn)
8.0bn
PROFIT FROM CONTINUING
OPERATIONS (DKK)
Special items, net, amounted to DKK -431m
(2022: DKK -784m). Special items are detailed
in section 3.1.
Financial items, net, amounted to DKK -844m
(2022: DKK -725m). Excluding currency gains
and losses, financial items, net, amounted to
DKK -693m (2022: DKK -506m). The increase
was mainly due to higher average funding
costs, higher net interest-bearing debt and
factoring fees. Net currency losses mainly
related to the strengthening of the EUR/DKK
and conversion costs for the Laotian kip.
Financial items are detailed in section 4.1.
Tax totalled DKK -1,859m (2022: DKK -1,778m).
The effective tax rate was impacted by certain
non-recurring items, including adjustments
related to prior years and the deconsolidation
of the Russian business. Tax is detailed in
section 6.1.
Profit for the period, continuing operations, was
DKK 7,971m (2022: DKK 8,183m).
2019-2020 including Russia. 2021-2023 excluding Russia.
9.2%0.6%-5.1%2022OrganicAcq.FX202356606468727680201920202021202220230.02.04.06.08.010.012.0 CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
64
The Carlsberg Group’s share of profit for the
period was DKK -40,788m (2022: DKK
-1,063m), impacted by the deconsolidation of
the Russian business. See section 5.1 for further
details. Non-controlling interests’ share of profit
for the period was DKK 1,011m (2022: DKK
1,171m).
54.6
EARNINGS PER SHARE,
CONTINUING OPERATIONS,
ADJUSTED (DKK)
Adjusted earnings per share for continuing
operations declined by 2.0% to DKK 54.6
(2022: DKK 55.7). Adjusted earnings per share
were supported by the share buy-back
programmes.
Earnings per share were DKK -299.7 due to the
deconsolidation of the Russian business.
EARNINGS PER SHARE, CONTINUING
OPERATIONS (DKK)
11.6bn
OPERATING CASH FLOW (DKK)
Cash flow from operating activities amounted
to DKK 11,607m (2022: DKK 12,949m).
The change in trade working capital was DKK
+698m (2022: DKK +1,908m), mainly impacted
by the increase in trade payables. Average
trade working capital to revenue for the year
was -20.3% (2022: -21.5%).
The change in other working capital was DKK
-780m (2022: DKK -465m), impacted by the
payment of a competition fine in Germany.
Restructuring costs and other special items paid
of DKK -552m (2022: DKK -171m) were
impacted by the termination of the
Kronenbourg 1664 licensee agreement in the
UK. Net interest etc. paid amounted to DKK
-273m (2022: DKK -1,010m). The improvement
was mainly due to gains on the settlement of
financial instruments. Corporation tax paid was
DKK -2,166m (2022: DKK -2,103m).
4.9bn
FREE CASH FLOW (DKK)
Free cash flow amounted to DKK 4,878m
(2022: DKK 9,884m), while free operating cash
flow amounted to DKK 7,469m (2022: DKK
9,474m). Free cash flow was negatively
impacted in 2023 by the placement of cash in
deposits not meeting the definition of cash and
cash equivalents.
Operational investments totalled DKK -4,138m
(2022: DKK -3,475m). Acquisition of property,
plant and equipment and intangible assets
(CapEx) amounted to DKK -4,243m (2022: DKK
-4,018m).
Total financial investments amounted to DKK
-2,591m (2022: DKK +410m), mainly
attributable to the considerations related to the
acquisition of Waterloo Brewing in Canada and
the placement of cash in deposits.
FREE CASH FLOW (DKKbn)
EPS, continuing operations
EPS-A, continuing operations
2019-2020 including Russia. 2021-2023 excluding Russia.
Free operating cash flow
Free cash flow
20192020202120222023010203040506020192020202120222023024681012 CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
65
Western
Europe
37,317
-32,643
307
4,981
Asia
23,288
-18,329
249
5,208
Central &
Eastern
Europe
12,959
-10,756
21
2,224
21
-1,287
-
-1,266
Not
allocated
Beverages,
total
Non-
beverage
Carlsberg
Group, total
73,585
-63,015
577
11,147
-416
-803
9,928
-1,983
7,945
-47,748
-39,803
15.1%
70,265
-59,627
675
11,313
-794
-714
9,805
-1,844
7,961
-8,075
-114
16.1%
-
-46
4
-42
-15
-41
-98
124
26
-
26
-
-69
226
157
10
-11
156
66
222
-
222
73,585
-63,061
581
11,105
-431
-844
9,830
-1,859
7,971
-47,748
-39,777
15.1%
70,265
-59,696
901
11,470
-784
-725
9,961
-1,778
8,183
-8,075
108
16.3%
13.3%
22.4%
17.2%
34,888
-30,245
323
4,966
23,682
-18,553
306
5,435
11,679
-9,415
18
2,282
16
-1,414
28
-1,370
14.2%
22.9%
19.5%
Segmentation of income statement
DKK million
2023
Revenue
Total cost
Share of profit after tax of associates
Operating profit before special items
Special items, net
Financial items, net
Profit before tax
Income tax
Profit from continuing operations
Loss from discontinued operations
Profit for the period
Operating margin
2022
Revenue
Total cost
Share of profit after tax of associates
Operating profit before special items
Special items, net
Financial items, net
Profit before tax
Income tax
Profit from continuing operations
Loss from discontinued operations
Profit for the period
Operating margin
SECTION 1.1
SEGMENTATION OF
OPERATIONS
The segmentation used in the Annual
Report 2023 is unchanged from 2022.
Since the acquisition, Waterloo Brewing in
Canada has been included in Central & Eastern
Europe, and Jing-A Group in China has been
included in Asia, cf. section 5.3.
REVENUE
The Group’s revenue arises primarily from the
sale of beverages to its customers.
In 2023, total revenue was positively impacted
by improved revenue/hl growth driven by price
increases across all markets in order to offset
the significant cost increases. This was
supported by a positive product mix. Reported
revenue growth was partly offset by a negative
currency impact.
Other revenue by category is sales of products
other than beverages that do not drive any
volume, such as merchandise, services and by-
products. In aggregate, other revenue accounts
for around 1% of Group total revenue and is
therefore not considered material.
Not allocated revenue, DKK 21m (2022:
DKK 16m), consisted of DKK 750m (2022: DKK
733m) in revenue and DKK -729m (2022: DKK
-717m) from eliminations of sales between the
geographical segments.
The distribution of revenue between beer and
other beverages relative to volumes is largely
the same across regions.
Revenue by category
Revenue and excise duties
DKK million
Beer revenue
Other beverages
Other revenue
Total
DKK million
2023
2022
2023
54,312
18,277
996
2022
51,825
17,569
871
Excise duties
73,585
70,265
Revenue
Revenue, including excise
duties
97,740
-24,155
73,585
95,147
-24,882
70,265
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
66
SECTION 1.1 (CONTINUED)
SEGMENTATION OF
OPERATIONS
Geographical allocation of revenue
DKK million
2023
2022
Denmark (Carlsberg A/S’
domicile)
China
United Kingdom
Other countries
Total
4,919
13,354
7,902
47,410
73,585
4,487
13,781
7,070
44,927
70,265
VOLUMES
The organic decline in total volumes was the
result of lower volumes in Western Europe and
Central & Eastern Europe while Asia continued
the volume growth from last year. Reported
volume was positively affected by the
acquisition of Waterloo Brewing.
OPERATING PROFIT BEFORE
SPECIAL ITEMS
Not allocated operating profit before special
items, DKK -1,266m (2022: DKK -1,370m),
related to central costs not managed by the
regions, including costs of developing branding
activities to support the strategic initiatives and
general costs of centralised functions. Group
operating profit declined by 3.2%, negatively
affected by currency impact. Organic growth in
operating profit was 5.2%.
OPERATING MARGIN
The operating margin declined to 15.1%
compared to 16.3% in 2022. The decline was
due to lower gross margin and increased
marketing investments.
NON-CONTROLLING INTERESTS
The Group’s non-controlling interests consist of
Lao Brewery, Carlsberg Chongqing Breweries
Group, Carlsberg Malaysia Group and Carlsberg
Marston’s Brewing Group, as well as other non-
controlling interests, primarily in the Asia
region. Non-controlling interests are not
individually material to the Group’s total profit.
CHANGES TO THE SEGMENTATION IN 2024
The Group’s regional structure was changed
effective 1 January 2024, with the aim of
rebalancing the size of the regions after our exit
from Russia. As a result of this change, the
operation in Carlsberg India and the investment
in Gorkha Brewery in Nepal will move from the
Asia region to the renamed Central & Eastern
Europe and India (CEEI) region. At the same
time, Carlsberg Shared Services will move from
Not allocated to Western Europe as it mainly
provides services to the markets in this region.
Please refer to section 9.5 for further
disclosures.
ACCOUNTING ESTIMATES
AND JUDGEMENTS
The Group considers all terms and activities in
contracts with customers in order to determine the
performance obligation, the transaction price and the
allocation of the transaction price.
If the consideration in a contract includes a variable
amount, the Group estimates the consideration to
which it will be entitled in exchange for transferring
goods to the customer. The variable consideration is
estimated at contract inception based on expected
sales volumes using historical and year-to-date sales
data and other information about trading with the
individual customer or with a group of customers.
The Group estimates discounts using either the
expected value method or the most likely amount
method, depending on which method better predicts
the amount of consideration to which it will be
entitled.
The most likely amount method is used for contracts
with a single contract sum, while the expected value
method is used for contracts with more than one
threshold because of the complexity and the activities
agreed with the individual customer.
Certain contracts related to specific major events that
are held within such a short time period that it is not
possible to sell all the goods during the event (e.g.
football matches) give the customer the right to
return the goods within a specified period.
Group financial performance
Volumes (million hl)
Beer
Other beverages
Total volume
DKK million
Revenue
Operating profit
Operating margin (%)
2022
101.0
24.4
125.4
70,265
11,470
16.3
Change
Organic
Acq., net
-0.4%
-0.9%
-0.5%
0.3%
0.0%
0.2%
FX
-
-
-
9.2%
5.2%
0.6%
-0.2%
-5.1%
-8.2%
2023
101.0
24.1
125.1
73,585
11,105
15.1
Change
Reported
-0.1%
-0.9%
-0.3%
4.7%
-3.2%
-120bp
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
67
SECTION 1.1 (CONTINUED)
SEGMENTATION OF
OPERATIONS
The Group uses the expected value method to
estimate the goods that will not be returned, as this
method best predicts the amount of variable
consideration to which the Group will be entitled. For
goods that are expected to be returned, the Group
recognises a refund liability instead of revenue.
Management makes judgements when deciding
whether supporting activities with customers should
be classified as a discount or a marketing expense.
Generally, activities with an individual customer are
accounted for as a discount, whereas costs related to
broader marketing activities are classified as
marketing expenses.
Whether the Group is acting as a principal or an agent
is assessed by management on a country-by-country
basis. The Group has concluded that it acts as the
principal in its revenue arrangements because it
controls the goods before transferring them to the
customer.
Excise duties, taxes and fees
The classification of duties, taxes and fees paid to
local authorities or brewery organisations etc. requires
judgements on the classification to be made by
management.
Locally imposed duties, taxes and fees are typically
based on product type, alcohol content, consumption
of certain raw materials, such as glue, plastic or metal
in caps, and energy consumption. These are classified
as either sales- or production-related.
Excise duties are generally imposed by the tax
authorities as taxes on consumption and are collected
by the Group on behalf of the authorities when the
goods are transferred to the customers and thereby
ready for consumption.
Taxes and fees related to the input/use of goods in
production, distribution etc. are recognised as part of
the cost of the goods or services purchased. The type
of authority or organisation imposing the duty, tax or
fee and the objective of this are key factors when
determining the classification.
ACCOUNTING
POLICIES
Revenue
Recognition and measurement
Revenue from contracts with customers comprises
sales of goods, royalty income, rental income from
non-stationary equipment, service fees and sales of
by-products.
Revenue from the sale of own-produced finished
goods, goods for resale (third-party products) and by-
products is recognised at the point in time when the
control of goods and products is transferred to the
customer, which is generally upon delivery. For
contracts providing the customer with a right of return
within a specified period, the Group considers the
timing of recognition.
Revenue from sales- or usage-based royalties is
recognised when (a) the customer subsequently sells
or uses the goods, or (b) the performance obligation
to which some or all of the sale- or usage-based
royalty has been allocated is satisfied (or partially
satisfied), whichever is later.
Revenue from contracts with customers is measured
at an amount that reflects the expected consideration
for those goods. Amounts disclosed as revenue
exclude discounts, VAT and excise duties collected on
behalf of authorities.
The Group considers whether contracts include
separate performance obligations to which a portion
of the transaction price needs to be allocated. In
determining the transaction price, the Group considers
the effects of variable consideration. No element of
financing is deemed present, as payment is generally
made on the basis of cash on delivery or up to 30
days of credit.
Variable consideration
The Group offers various discounts depending on the
nature of the customer and business.
Discounts comprise off-invoice discounts, volume- and
activity-related discounts, including specific promotion
prices offered, and other discounts. Furthermore,
discounts include the difference between the present
value and the nominal amount of on-trade loans to
customers, cf. section 1.5.
Off-invoice discounts arise from sales transactions
where the customer immediately receives a reduction
in the sales price. This also includes cash discounts
and incentives for early payments.
Volume- and activity-related discounts is a broad
term covering incentives for customers to sustain
business with the Group over a longer time and may
be related to a current campaign or a sales target
measured in volumes or total value. Examples include
discounts paid as a lump sum, discounts for meeting
certain sales targets or progressive discounts offered
in step with increasing sales to a customer.
Other discounts include listing fees, i.e. fees for certain
listings on shelves, in coolers or in favourable store
locations, as specific promotions of this nature are
closely related to the volumes sold.
Segment information
The Group’s beverage activities are segmented
according to the three geographical regions where
sales take place. These regions make up the Group’s
reportable segments.
The segmentation reflects the geographical and
strategic management, decision and reporting
structure applied by the Executive Committee for
monitoring the Group’s strategic and financial targets.
Segments are managed based on business
performance measured as operating profit before
special items.
Not allocated comprises income and expenses
incurred for ongoing support of the Group’s overall
operations and strategic development. The expenses
include costs of running central functions and
marketing, such as global sponsorships.
The non-beverage segment, comprising research and
real estate activities, is managed separately and
therefore shown separately instead of geographically
segmented.
The geographical allocation of revenue and non-
current assets is based on the selling entities’ domicile
and comprises countries individually accounting for
more than 10% of the Group’s consolidated revenue
as well as the domicile country.
Decisions on restructuring, acquisition and divestment
of entities included in special items as well as on
financing (financial income and expenses) are made
based on information for the Group as a whole and
therefore not segmented. A similar approach is taken
regarding tax associated with these transactions.
The segmentation of the Group’s assets and returns is
disclosed in section 2.1.
Reported figures
Reported figures are analysed by looking at the
impact of organic growth, net acquisitions and foreign
exchange effects.
The net acquisition effect is calculated as the effect of
acquisitions and disposals, including any share
obtained from an increase/decrease in ownership of
associates, for a 12-month period from the
acquisition/disposal date.
The foreign exchange effect is calculated as the
difference between the figures for the current
reporting period translated at the current exchange
rates and at the exchange rates applied in the
previous reporting period.
Organic growth is the remaining growth that is not
related to acquisitions, disposals or foreign exchange
effects.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
68
For electricity and natural gas, used in
production of the Group’s own products, most
markets in Central & Eastern Europe and Asia
are regulated with no possibility to hedge
prices. In Western Europe, where most markets
allow forward hedging, the majority of the
Group’s exposure is hedged up to a 15-month
rolling basis. For the electricity used at the
Fredericia site in Denmark, a 10-year PPA
starting mid-2024 has been entered into.
The fair value of derivative financial
instruments is specified in section 4.9.
In January 2023, the Group hedged fuel, linked
to distribution expenses, via financial contracts
for 2023 using a similar set-up to how
aluminium is hedged. At 31 December there
were no fuel hedges for 2024.
SECTION 1.2
OPERATING
EXPENSES AND
INVENTORIES
1.2.1 COST OF SALES AND INVENTORIES
Cost of sales increased by 7% compared with
2022, due to higher input and energy costs and
higher salaries. Cost of sales per hl increased by
7% compared with 2022.
Cost of sales
DKK million
Cost of materials
Direct staff costs
Amortisation and depreciation
Indirect production
overheads
Purchased finished goods and
other costs
Total
2023
23,618
1,528
2,411
2022
21,655
1,521
2,536
5,067
4,788
8,129
40,753
7,698
38,198
Inventories increased by 2% compared with
2022, impacted by cost increases across
markets and the acquisition of Waterloo
Brewing.
Inventories
DKK million
Raw materials
Work in progress
Finished goods
Total
2023
2,359
399
3,053
5,811
2022
2,333
344
3,041
5,718
Commodity price risk is associated with
externally sourced input materials, such as malt
(barley), cans (aluminium), paper, sugar and
glass & plastic (PET) bottles. Commodity risk
management is coordinated centrally and
aimed at achieving predictable prices in the
medium term.
The aluminium price risk was hedged for both
2023 and 2024, and for 2024 the aluminium
spot premium has been hedged using derivative
financial instruments applying hedge
percentages in line with the policy. The fair
values of the derivative financial instruments
are specified in section 4.9.
As the underlying markets for the commodity
categories are different, so is the way in which
they are hedged.
The most common form of hedging is fixed-
price purchase agreements with suppliers in
local currencies.
For barley and aluminium, the two most
significant commodity exposures, Group policy
is to have a minimum of 70% hedged for a
given year by the end of the third quarter of the
previous year, with a target hedge ratio of 90%
at the beginning of the year.
A significant part of the Group’s barley
exposure for 2023 had therefore been hedged
through fixed-price purchase agreements
entered into in 2022. Likewise, the majority of
the exposure for 2024 was hedged in 2023.
In the Group’s long-term purchase agreements
for cans, the aluminium price is variable and
based on the global market price of aluminium
(London Metal Exchange, LME) and in some
contracts the can price is also variable with
respect to the aluminium spot premium.
For sugar we enter into rolling forward hedges
with suppliers fixing prices linked to official
indices, for example NY11. As with barley and
aluminium, the majority of the 2023 sugar
exposure had been hedged in 2022. Likewise,
the majority of the exposure for 2024 was
hedged in 2023.
Other commodities, such as PET resins, paper,
rice and corn, are also hedged directly via
suppliers fixing prices to the extent possible.
Hedging of raw material price risk
DKK
million
Sensitivity assuming
100% efficiency
Aluminium
Change
2023
2022
Aluminium
premium
2023
Energy
2023
2022
20%
20%
Change
30%
Change
20%
20%
Effect
on OCI
Tonnes
purchased
Average
price (DKK)
371
381
116,529
116,454
16,238
18,304
Effect
on OCI
28
Tonnes
purchased
Average
price (DKK)
60,415
1,343
Time of maturity
2023
-
93,608
2023
-
2024
93,582
22,846
2024
60,415
2025
22,947
-
2025
-
Effect
on OCI
MWh
purchased
Average
price (DKK)
< 1 year
1-5 years
> 5 years
29
34
289,966
289,966
420
420
12,123
-
116,000
99,123
161,843
190,843
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
69
SECTION 1.2 (CONTINUED)
OPERATING
EXPENSES AND
INVENTORIES
ACCOUNTING ESTIMATES
AND JUDGEMENTS
At least once a year, management assesses whether
the standard cost of inventories approximates the
actual cost. During the year, the standard cost is
revised if it deviates by more than 5% from the actual
cost. Indirect production overheads are calculated on
the basis of relevant assumptions as to capacity
utilisation, production time and other factors.
The calculation of the net realisable value of
inventories is relevant to packaging materials, point-
of-sale materials and spare parts. The net realisable
value is normally not calculated for beer and soft
drinks due to their limited shelf-life, which means that
slow-moving goods must be scrapped instead.
ACCOUNTING
POLICIES
Inventories are measured at the lower of standard
cost (own-produced finished goods) and weighted
average cost (other inventories), or net realisable
value. The net realisable value is the estimated selling
price less costs of completion and costs necessary to
make the sale, also taking into account marketability,
obsolescence and developments in expected selling
price.
The cost of scrapped/impaired goods is expensed in
the function (line item) responsible for the loss, i.e.
losses during distribution are included in distribution
expenses, while scrapping of products due to sales not
meeting forecasts is included in sales expenses.
1.2.2 SALES AND DISTRIBUTION
EXPENSES
Marketing expenses increased due to
accelerated investments in brands and
activities. Distribution expenses increased by
6% per hl as a result of increased energy prices.
Total marketing, sales and distribution
expenses increased by 6%.
Trade marketing is promotional activities directed
towards customers, such as the supply of point-of-
sale materials, promotional materials and trade
offers.
Sales expenses comprise costs relating to general
sales activities, write-downs for bad debt losses,
wages and salaries as well as depreciation and
impairment of sales equipment. Distribution expenses
comprise costs incurred in distributing goods, wages
and salaries, and depreciation and impairment of
distribution equipment.
1.2.3 OTHER OPERATING
ACTIVITIES, NET
Other operating activities are secondary to the
principal activities of the Group and include
income and expenses relating to rental
properties, restaurants, on-trade loans, research
activities, and gains and losses on disposal of
intangible assets and property, plant and
equipment.
Sales and distribution expenses
Other operating activities, net
ACCOUNTING
POLICIES
Gains and losses on disposal of intangible assets and
property, plant and equipment are determined as the
sales price less selling costs and the carrying amount
at the disposal date.
On-trade loans, net, comprise the effective interest on
the loans measured at amortised cost less
impairment.
Expenses relating to research activities comprise
research in Denmark and France less funding received
from the Carlsberg Foundation for the operation of
the Carlsberg Research Laboratory and grants
received to fund research. The funding and grants are
recognised in the income statement in the same
period as the activities to which they relate. Product
development costs are included in cost of sales.
DKK million
2023
2022
Cost of sales comprises cost of materials used in
own-produced finished goods, including malt (barley),
hops, glass, cans, other packaging materials, direct
labour, indirect production overheads and standard
cost variations. Further, it comprises purchased
finished goods, which include cost of point-of-sale
materials and third-party products sold to customers.
DKK million
Marketing expenses
Sales expenses
Distribution expenses
Total
Indirect production overheads comprise indirect
supplies, wages and salaries, amortisation of brands
and software, as well as maintenance and
depreciation of machinery, plant and equipment used
for production.
The cost of purchased finished goods, raw and
packaging materials and point-of-sale materials
includes the purchase cost and costs directly related
to bringing inventories to the relevant place of sale
and getting them ready for sale, for example
insurance, freight and duties.
ACCOUNTING
POLICIES
Marketing expenses consist of expenses for brand
marketing and trade marketing.
Brand marketing is an investment in the Group’s
brands and consists of brand-specific investments in
the development of communication vehicles, the use
of these is to drive the sale of branded products, sales
campaigns and sponsorships.
2023
6,169
5,371
6,815
2022
5,793
5,120
6,424
Gains and losses on disposal
of property, plant and
equipment and intangible
assets, net
18,355
17,337
On-trade loans, net
Real estate, net
Research centres, net
Other, net
Total
47
95
13
-132
101
124
79
30
18
-107
48
68
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
70
finance. The main currencies impacting net
finance during 2023 have been RUB, KZT and
LAK (receivables and payables) and EUR
(borrowings). The combined foreign exchange
and fair value adjustment loss in 2023 was DKK
151m net. As at 31 December 2023 there is no
RUB exposure.
Entities in
The eurozone
China
Norway
UK
Switzerland
Sweden
Laos
Ukraine
Functional
currency
Change in average FX
rate 2022 to 2023
EUR
CNY
NOK
GBP
CHF
SEK
LAK
UAH
0.2 %
-7.7 %
-11.7 %
-1.6 %
3.4 %
-7.3 %
-26.5 %
-15.3 %
SECTION 1.3
FOREIGN EXCHANGE
RISK RELATED TO
EARNINGS
The majority of the Group’s activities take place
outside Denmark and in currencies other than
DKK. Foreign exchange risk is therefore a
principal financial risk for the Group, and
exchange rate fluctuations can have a
significant impact on the income statement
both in the form of transactional and
translational risk.
REVENUE BY CURRENCY (%)
2023 (2022)
EUR and DKK are in a fixed exchange rate relationship
and consequently EUR is not hedged.
TRANSACTION RISKS ON PURCHASES
AND SALES
The Group is exposed to transaction risks on
purchases and sales in currencies other than the
local functional currencies. The Group aims to
hedge 70-90% of future cash flows in
currencies other than the local functional
currency on a four-quarter rolling basis.
Western Europe
For the entities in Western Europe, a major part
of the purchases in foreign currencies is in EUR.
This also applies to markets with a functional
currency other than EUR.
Ukraine’s expenses in EUR and USD by
designating bank deposits in these currencies as
hedging instruments. Carlsberg Kazakhstan
holds intercompany deposits in EUR and USD.
The revaluation of these is recognised in
financial items, and they are not designated as
cash flow hedges, but will in economic terms
give the Group some protection against
depreciation of the local currencies.
TRANSLATION RISK
The Group is exposed to risk from translation of
foreign entities into the Group’s presentation
currency, DKK.
Hedging of EUR against the non-EUR local
currencies will effectively eliminate a significant
part of the currency risk in the entities’
operating profit in local currency. At Group
level, these hedges are effectively a hedge of
(parts of) the revenue in the relevant currency
and are accounted for as cash flow hedges, cf.
section 4.9. The hedged amounts and the
sensitivity analysis regarding these hedges are
shown in section 4.7.4.
Asia
The transaction risk is considered to be less
significant due to lower purchases of raw and
packaging materials in currencies other than
the local functional currencies as well as the
high correlation between USD and most of the
Asian currencies. An exception is Laos, which
has a significant spend in USD that is not
possible to hedge.
Central & Eastern Europe
The largest foreign exchange risk in Central &
Eastern Europe relates to Ukraine and
Kazakhstan and the purchase of raw and
packaging materials denominated in foreign
currencies. For 2023 and 2024, the Group has
chosen to hedge a portion of Carlsberg
The single largest translation impact in respect
of operating profit in 2023 was CNY due to the
7.7% depreciation of the currency compared
with 2022 and the relative share of the Group’s
operating profit generated in China. Moving
into 2024, the most significant currency
volatility exposure in terms of operating profit
and translation of net investments in foreign
entities is CNY.
The foreign exchange risk on translation of
revenue or earnings in foreign currencies can
not be hedged accounting-wise. To reduce the
economic risk, the Group has entered into
financial instruments designated as net
investment hedges, cf. section 4.7.1.
Impact on operating profit
Developments in exchange rates between
DKK and the functional currencies had a
negative impact of 8.2% on operating profit
measured in DKK.
Impact on net finance
Developments in exchange rates between
functional currencies of entities and the
currency of cash, borrowings and ordinary trade
receivables and payables will impact net
CNY 18% (20%)EUR 19% (18%)GBP 11% (10%)DKK 9% (9%)NOK 6% (7%)CHF 6% (6%)SEK 4% (4%)PLN 4% (4%)LAK 3% (3%)Other 20% (19%)
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
71
Cash flow from the change in other working
capital declined by DKK 780m (2022: DKK
465m), impacted by the payment of a
competition fine in Germany, cf. section 3.2.
Net interest etc. paid amounted to DKK -273m
(2022: DKK -1,010m). The improvement was
largely due to settlement of financial
instruments.
The impact on average trade working capital
from the use of supplier finance arrangements
and factoring is limited, as the utilisation is
similar to previous years.
The change in on-trade loans amounted to
DKK -10m (2022: DKK +129m).
Income tax paid amounted to DKK -2,166m
(2022: DKK -2,103m).
ACCOUNTING ESTIMATES
AND JUDGEMENTS
SECTION 1.4
CASH FLOW FROM
OPERATING
ACTIVITIES
The change in trade working capital amounted
to DKK 698m (2022: DKK 1,908m), driven by
continued cash management discipline and
higher trade payables.
Average trade working capital to revenue for
the year was -20.3% (2022: -21.5%).
Restructuring costs and other special items paid
amounted to DKK -552m (2022: DKK -171m),
mainly due to the termination of a licensee
agreement in the UK, as well as various
restructuring and optimisation projects across
the Group.
Other specifications of cash flow from operating activities
DKK million
Section
2023
2022
Other non-cash items
Share of profit after tax of associates
Gain on disposal of property, plant and equipment and intangible
assets, net
5.5
2.3
Share-based payments
Other items
Total
Trade working capital
Inventories
Trade receivables
Trade payables, duties payable and deposits on returnable packaging
materials
Total
Other working capital
Other receivables
Other payables
Retirement benefit obligations and provisions
Unrealised foreign exchange gains/losses
Total
-581
-47
130
-1
-499
-143
223
618
698
232
-176
-833
-3
-780
-901
-79
97
16
-867
-1,271
-232
3,411
1,908
-495
134
-72
-32
-465
The deposit on returnable packaging materials is
estimated based on movements during the year in
recognised liabilities, loss of returnable packaging
materials in the market, planned changes in
packaging types and historical information about
return rates.
ACCOUNTING
POLICIES
Trade payables are recognised initially at fair value
and subsequently measured at cost. Trade payables
comprise purchase of goods and services, including
payables to supplier finance vendors, and
retrospective rebates to customers, and are part of
the normal working capital cycle. The cash flow
arising from all trade payables is part of cash flow
from operating activities.
The obligation to refund deposits on returnable
packaging materials is measured on the basis of
deposit price, an estimate of the number of bottles,
kegs, cans and crates in circulation, and expected
return rates.
Supplier finance arrangements A number of
the Group’s suppliers participate in supplier
finance arrangements, with a supply chain
finance provider and related financial
institutions acting as a funding partner. When
suppliers participate in these programmes, they
have the option of receiving early payment
from the funding partner of invoices sent
to Carlsberg.
The arrangement is exclusively between the
supplier and the supply chain finance provider
and separate from Carlsberg’s relationship with
its suppliers. Carlsberg’s liability to pay invoices
is unaffected by the supplier finance
arrangement and whether or not the suppliers
opt for early payment. The liability is
recognised in trade payables until the due date
of the invoice, which is in no case more than
180 days from the invoice date. Cessation of
the supplier finance arrangement would not
constitute a significant risk in terms of liquidity
because of the amounts involved and the
number of supply chain finance providers.
Sale of receivables Carlsberg has chosen to sell
some of its trade receivables in selected
Western European markets in non-recourse
factoring agreements to expedite cash
collection from groups of customers. Carlsberg
does not carry any credit risk on these
customers and has no continuing involvement
in these trade receivables, which have therefore
been derecognised.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
72
SECTION 1.5
TRADE AND OTHER
RECEIVABLES
The Group’s trade receivables consist of
receivables from sales of goods and services
and on-trade loans. Non-current receivables
consist mainly of on-trade loans that fall due
more than one year from the reporting date. Of
the total non-current receivables, DKK 124m
(2022: DKK 166m) falls due more than five
years from the reporting date.
The carrying amount of receivables
approximates their fair value. For on-trade
loans, the fair value is calculated as discounted
cash flows using the interest rate at the
reporting date.
ON-TRADE LOANS
Under certain circumstances, the Group grants
loans to on-trade customers in France, the UK,
Switzerland, Germany and Sweden. On-trade
loans are spread across a large number of
customers/debtors and consist of several types
of loan, including loans repaid in cash or
through reduced discounts and guarantees for
loans provided by third parties, cf. section 3.4.
The operating entities monitor and control
these loans in accordance with Group
guidelines.
The average effective interest rate on loans to
the on-trade was 4.7% (2022: 3.5%). The
interest income is recognised in other operating
activities.
On-trade loans recognised in other operating
activities, net
DKK million
2023
2022
Interest and amortisation of
on-trade loans
Losses and write-downs on
on-trade loans
On-trade loans, net
Change in on-trade loans
DKK million
Loans provided
Repayments
Amortisation of on-trade
loans
Total
60
35
95
2023
-448
218
220
-10
47
-17
30
2022
-261
192
198
129
OTHER RECEIVABLES
Other receivables primarily comprise VAT and
similar government receivables, interest
receivables and other financial receivables.
These are associated with low risk.
The distribution of receivables broken down by
country is affected by market-specific changes
in payment patterns. For receivables from sale
of goods and services, the distribution is
furthermore impacted by the value of
receivables sold. The overall level of receivables
sold in non-recourse factoring schemes was
similar to the level in 2022.
RECEIVABLES FROM SALES OF GOODS AND
SERVICES
(BROKEN DOWN BY COUNTRY)
ON-TRADE LOANS
(BROKEN DOWN BY COUNTRY)
2023 (2022)
2023 (2022)
Receivables included in the statement of financial position
DKK million
2023
Receivables from sales of goods and services
On-trade loans
Other receivables
Total receivables
2022
Receivables from sales of goods and services
On-trade loans
Other receivables
Total receivables
Non-
current
Current
Total
Receivables
Trade
receivables
Other
receivables
-
657
224
881
-
644
292
936
4,866
236
-
5,102
4,825
242
-
5,067
-
-
2,476
2,476
-
-
2,505
2,505
4,866
893
2,700
8,459
4,825
886
2,797
8,508
UK 18% (16%)Sweden 9% (8%)Poland 9% (5%)France 6% (8%)India 4% (4%)Ukraine 3% (2%)Finland 1% (8%)Other 50% (49%)Germany 32% (29%)France 28% (25%)Switzerland 26% (25%)Sweden 10% (9%)UK 4% (12%)
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
73
SECTION 1.5 (CONTINUED)
TRADE AND OTHER
RECEIVABLES
1.5.1 CREDIT RISK
In 2023, receivables not past due amounted to
85% (2022: 78%) of total gross receivables.
The past-due share of gross loans to on-trade
customers was 34% (2022: 34%).
Total accumulated allowances for impairment
losses on on-trade loans were DKK 426m
(2022: DKK 438m).
The share of receivables from sales of goods
and services that are past due decreased from
18% to 14%.
The credit risk on trade receivables is assessed
locally and monitored at Group level. The on-
trade channel, especially, has experienced
instability across markets, influenced by
unpredictable energy prices, inflation and
interest rates. As a result, the credit risk for on-
trade loans has on a collective basis increased
significantly since initial recognition, which is
why loss allowances are measured at an
amount equal to the lifetime expected credit
losses. This is the same as for receivables from
sales of goods and services.
The increased risk of credit losses is expected to
continue in 2024.
Credit risk on receivables
DKK million
2023
Gross
receivables
Loss
allowance
Receivables,
net
DKK million
Weighted
average
loss rate
2022
Gross
receivables
Loss
allowance
Receivables,
net
Weighted
average
loss rate
Receivables from sales of goods and services
Receivables from sales of goods and services
Not past due
Overdue 1-30 days
Overdue 31-90 days
Overdue > 90 days
Receivables from sales of goods and services
On-trade loans
Not past due
Overdue 1-30 days
Overdue 31-90 days
Overdue > 90 days
On-trade loans
Other receivables
Not past due
Overdue 1-30 days
Overdue 31-90 days
Overdue > 90 days
Other receivables
Total
4,740
362
87
343
5,532
864
15
25
415
1,319
2,479
24
66
145
2,714
9,565
-186
-97
-46
-337
-666
-102
-2
-4
-318
-426
-1
-
-
-13
-14
-1,106
4,554
265
41
6
4,866
762
13
21
97
893
2,478
24
66
132
2,700
8,459
4%
27%
53%
98%
12%
13%
16%
77%
Not past due
Overdue 1-30 days
Overdue 31-90 days
Overdue > 90 days
Receivables from sales of goods and services
On-trade loans
Not past due
Overdue 1-30 days
Overdue 31-90 days
Overdue > 90 days
On-trade loans
Other receivables
Not past due
Overdue 1-30 days
Overdue 31-90 days
-
-
-
9%
Overdue > 90 days
Other receivables
Total
4,453
483
191
311
5,438
873
11
30
410
1,324
2,168
107
89
449
2,813
9,575
-126
-133
-62
-292
-613
-104
-
-7
-327
-438
-
-
-
-16
-16
-1,067
4,327
350
129
19
4,825
769
11
23
83
886
2,168
107
89
433
2,797
8,508
3%
28%
32%
94%
12%
-
23%
80%
-
-
-
4%
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
74
Regarding on-trade loans and loans to associates, a
loss allowance is recognised based on 12-month or
lifetime expected credit losses, depending on whether
a significant increase in credit risk has arisen since
initial recognition.
In certain markets, the Group enters into factoring
agreements on a non-recourse basis, which involves
selling receivables from sales of goods and services to
a factor. Receivables subject to factoring agreements
are derecognised once the criteria for derecognition
have been met and all substantial risks and rewards
transferred. The Group does not have any continuing
involvement once the receivables have been
derecognised.
SECTION 1.5 (CONTINUED)
TRADE AND OTHER
RECEIVABLES
Development in impairment losses on receivables
DKK million
2023
Receivables
from sales
of goods
and services
On-trade
loans
Other
receivables
Impairment at 1 January
-613
-438
-16
Additional impairment losses
recognised
Realised during the year
Reversal of impairment losses
Acquisition of entities
Foreign exchange adjustments
Transferred to discontinued
operations
Impairment at 31 December
ACCOUNTING ESTIMATES
AND JUDGEMENTS
-86
20
39
-24
-2
-
-666
-65
7
76
-
-6
-
-
-
1
-
1
-
-426
-14
2022
Total
-1,106
-253
69
179
-
16
28
-1,067
Total
-1,067
-151
27
116
-24
-7
-
-1,106
On-trade loan agreements are complex, cover several
aspects of the customer relationship and may vary
from agreement to agreement. Management assesses
the recognition and classification of income and
expenses for each agreement, including the allocation
of payments from the customer between revenue,
discounts, interest (other operating activities) and
repayment of the loan.
The local entities assess the credit risk and adhere to
Group guidelines, which include setting credit limits,
encouraging cash payment, purchasing credit
insurance and holding collateral.
In assessing credit risk, management analyses the
need for impairment of trade receivables and on-trade
loans due to customers’ inability to pay. Credit risk
remains high and is expected to continue in 2024.
Management also assesses both individually and on a
portfolio basis whether developments in local
conditions for on-trade customers could impact the
expected credit losses.
At year-end 2023, management continued to assess
the lifetime expected credit losses for both receivables
from goods and services and on-trade loans in line
with 2022.
Exposure to credit risk on receivables is managed
locally, and credit limits are set as considered
appropriate for the customer, taking into account the
current local market conditions.
Expected credit losses are assessed for portfolios of
receivables based on customer segments, historical
information on payment patterns, terms of payment
and concentration maturity. The expected impact
includes the risk of insolvencies due to lack of
liquidity.
The portfolios are based on on-trade and off-trade
customers, and on-trade receivables and loans. On-
trade loans carry a higher risk than receivables from
sales of goods and services and are concentrated in a
few markets.The local entities manage and control
these loans in accordance with Group guidelines.
The credit risk on on-trade loans can be reduced by
means of collateral and pledges of on-trade movables
(equipment in bars, cafés etc.). The fair value of the
pledged on-trade movables cannot be estimated
reliably but is assessed to be insignificant, as they
cannot readily be reused.
ACCOUNTING
POLICIES
Receivables are recognised initially at the transaction
price and subsequently measured at amortised cost
less loss allowance or impairment losses. Trade
receivables comprise sale of goods and services as
well as short-term on-trade loans to customers. Other
receivables comprise VAT receivables, loans to
partners and associates, interest receivables and other
financial receivables.
For on-trade loans, any difference between the
present value and the nominal amount at inception is
treated as a prepaid discount to the customer, and the
discount is recognised in the income statement in
accordance with the terms of the agreement.
The market interest rate is used as the discount rate,
corresponding to the money market rate based on the
maturity of the loan with the addition of a risk
premium. The effective interest on these loans is
recognised in other operating activities, net. The
amortisation of the difference between the discount
rate and the effective interest rate is included as a
discount in revenue.
The Group applies the simplified approach to measure
expected credit losses. This entails recognising a
lifetime expected loss allowance for all receivables
from sales of goods and services. Loss rates are
determined based on grouping of receivables sharing
the same credit risk characteristics and past-due days.
SECTION 2
ASSET BASE
AND RETURNS
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
75
111.8bn
TOTAL ASSETS (DKK)
Total assets declined by DKK 3.5bn. The main
reason for the decrease was the
deconsolidation of the Russian business, partly
offset by higher current assets.
Intangible assets amounted to DKK 49.1bn at 31
December 2023 (2022: DKK 49.2bn).
ASSET BASE, CONTINUING OPERATIONS
(DKKbn)
Property, plant and equipment totalled
DKK 24.4bn (2022: DKK 23.7bn), mainly
impacted by additions and the acquisition of
Waterloo Brewing in March 2023.
Current assets increased by DKK 7.6bn to DKK
30.2bn. The increase was mainly due to higher
cash and cash equivalents and deposits
following the net issuance of EMTN bonds of
EUR 1.55bn.
4.2bn
CAPEX (DKK)
CapEx increased by DKK 225m, driven by
brewery investments in China and Vietnam, as
well as various capacity and capability
upgrades across the Group. CapEx to
amortisation and depreciation, excluding right-
of-use assets, increased to 117% (2022: 106%).
14.5%
ROIC
Return on invested capital (ROIC) decreased
by 70bp to 14.5% as a result of the lower
operating profit due to currencies, partly offset
by the lower effective tax rate, which was
impacted by non-recurring items. ROIC
excluding goodwill declined by 330bp to 38.3%.
CAPEX1 AND AMORTISATION/
DEPRECIATION1 (DKKbn)
RETURN ON INVESTED CAPITAL2
(% 12-MONTH AVERAGE)
CapEx
Amortisation and depreciation
CapEx/revenue
1 Excluding the purchase of the Brooklyn brand rights in 2020.
2 2019-2020 including Russia. 2021-2023 excluding Russia.
ROICROIC excl. goodwill2019202020212022202351015202530354045201920202021202220231.02.03.04.05.04.0%5.0%6.0%7.0%8.0%72.96.4-1.4-4.0-0.473.5Asset base, openingAcquisitions and disposals, incl. leases, netForeign exchange adjustmentsAmortisation/depreciationImpairment losses etc.Asset base, closing SECTION 2.1
SEGMENTATION OF
ASSETS AND
RETURNS
At year-end, invested capital was up by
DKK 0.9bn, primarily due to the acquisition of
Waterloo Brewing and the reduction of
provisions related to legal claims, and partially
offset by developments in currencies.
Waterloo Brewing was acquired in March 2023
and therefore did not have a full-year impact
on average invested capital.
Invested capital
DKK million
2023
2022
Total assets excluding assets
in discontinued operations
111,831
103,723
DKK million
2023
Invested capital
Less
Tax assets
Financial receivables, hedging
instruments and receivables
sold
Deposits and securities
Cash and cash equivalents
Assets included
Trade payables
Deposits on returnable
packaging materials
Provisions, excl. restructurings
Other liabilities, excl. hedging
instruments and contingent
consideration
Liabilities offset
Invested capital
Goodwill
Invested capital excl. goodwill
Invested capital, average
-1,810
-1,731
Invested capital excl. goodwill
Investments in associates
217
-2,236
-13,382
94,620
-22,159
-1,717
-2,424
615
-
-8,163
94,444
-21,917
-1,627
-3,027
Acquisition of property, plant and equipment and
intangible assets
Amortisation and depreciation
Impairment losses, net
Return on invested capital (ROIC)
ROIC excl. goodwill
2022
Invested capital
Invested capital excl. goodwill
Investments in associates
-7,231
-7,662
-33,531
-34,233
Acquisition of property, plant and equipment and
intangible assets
61,089
-38,315
22,774
62,037
60,211
Amortisation and depreciation
-38,453
21,758
62,053
Impairment losses, net
Return on invested capital (ROIC)
ROIC excl. goodwill
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
76
Non-current assets comprise intangible assets
and property, plant and equipment owned by
the segment/country, even if the income is
earned outside the segment/country that owns
the asset.
Non-current assets included in invested capital
further comprise financial assets other than
financial instruments and tax assets.
Not allocated comprises supporting companies
without brewing activities, and eliminations of
investments in subsidiaries, receivables and
loans.
Geographical allocation of non-current assets
ACCOUNTING ESTIMATES
AND JUDGEMENTS
DKK million
2023
2022
Denmark (Carlsberg A/S’
domicile)
China
France
Other countries
Total
4,792
15,612
11,125
47,413
78,942
4,744
15,906
11,100
46,675
78,425
The calculation of return on invested capital (ROIC)
uses operating profit before special items adjusted for
tax based on the effective tax rate, and invested
capital excluding assets in discontinued operations,
including assets held for sale and trade receivables
sold, and excludes contingent considerations and
income tax.
ACCOUNTING
POLICIES
The Group’s assets and returns are segmented on the
basis of geographical regions in accordance with the
management reporting for the current year, cf. section
1.1.
Western
Europe
34,712
14,232
2,439
1,533
1,859
338
11.4%
27.0%
34,098
13,857
2,361
1,363
1,781
56
11.1%
26.2%
Asia
18,293
3,897
2,225
1,841
1,363
-100
21.9%
110.2%
18,910
3,652
2,402
1,860
1,350
308
20.9%
112.4%
Central &
Eastern
Europe
Not
allocated
Beverages,
total
Non-
beverage
Carlsberg
Group,
total
7,675
4,236
36
682
669
127
23.2%
40.9%
6,625
3,671
27
645
601
723
27.7%
49.7%
-328
-328
6
177
88
40
-
-
-474
-474
6
132
106
43
-
-
60,352
22,037
4,706
4,233
3,979
405
14.8%
40.0%
59,159
20,706
4,796
4,000
3,838
1,130
15.2%
43.0%
737
737
731
10
2
-
-
-
1,052
1,052
727
18
15
-10
-
-
61,089
22,774
5,437
4,243
3,981
405
14.5%
38.3%
60,211
21,758
5,523
4,018
3,853
1,120
15.2%
41.6%
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
77
2.2.2 SIGNIFICANT AMOUNTS OF
GOODWILL AND BRANDS
Goodwill and brands with indefinite useful life
relating to the acquisitions of Kronenbourg,
Chongqing Brewery Group and the 40% non-
controlling interest in Carlsberg Breweries A/S
each accounted for 10% or more of the total
carrying amount of goodwill and brands with
indefinite useful life at the reporting date.
Goodwill from these acquisitions has been
allocated to CGUs based on the geographical
segmentation.
The international brands acquired with the 40%
non-controlling interest in Carlsberg Breweries
A/S, Kronenbourg 1664 and Chongqing are
individually material and specified in section
2.2.4.
Impairment test 2022
In 2022, Russia was separated from the Central
& Eastern Europe CGU. The CGU was
subsequently tested for impairment, leading to
a write-down of goodwill of DKK 700m in
March 2022. Impairment tests of goodwill and
brands with indefinite useful life were prepared
at the reporting date, including an update to
the impairment test of the Central & Eastern
Europe CGU. The tests did not identify any
further impairments.
In addition, the Group recognised impairment
losses of DKK 233m on returnable packaging in
certain markets in Asia, DKK 22m on sales
equipment and returnable packaging in Ukraine
and DKK 172m on other items of property, plant
and equipment, in total DKK 427m.
Impairment of discontinued operation in Russia
Following the issuance of the presidential
decree in July 2023, temporarily transferring
the management of our Russian business to the
Russian Federal Agency for State Property
Management, the business was deconsolidated.
In September 2023, the Group terminated its
licence agreements with Baltika Breweries for
all the international brands sold in Russia and
wrote down its interest in the business to zero.
Total impairment losses in 2023 amounted to
DKK 7,002m (2022: DKK 9,949m).
SECTION 2.2
IMPAIRMENT
2.2.1 RECOGNISED IMPAIRMENTS
The impairment tests of goodwill and brands
with indefinite useful life were prepared at the
reporting date.
Impairment test 2023
The impairment tests prepared at 31 December
2023 did not identify any indication of
impairment of goodwill.
The Group recognised impairment losses of
DKK 305m on brands with indefinite useful life
in Western Europe, DKK 70m in Central &
Eastern Europe and DKK 97m in Asia. In
addition, impairment losses of DKK 53m were
recognised on brand rights in Central & Eastern
Europe for the use of brands from the
discontinued operation in Russia. In total,
impairment losses on brands amounted to DKK
525m.
Impairment losses of DKK 400m previously
recognised on brands in Asia were reversed.
Impairment losses and reversal of impairment
losses on brands were recognised in special
items, cf. section 3.1.
Impairment losses of DKK 171m primarily
related to Asia were recognised on property,
plant and equipment, of which DKK 122m was
recognised as special items. Impairment losses
on other non-current assets totalled DKK 63m
and were recognised in special items.
Impairment of non-current assets
DKK million
Intangible assets
Goodwill
Brands
Other intangible assets
Reversal of impairment losses
Total
Property, plant and equipment
Plant, machinery and equipment
Total
Other non-current assets
Assets held for sale
Investment in associates
Total impairment losses, net
Of which recognised in special items
Impairment losses, discontinued operation in Russia, net
Section
2023
2022
2.2.3
2.2.4
2.2.5
2.2.4
2.2.5
2.2.5
2.2.5
3.1
5.1
-
525
46
-400
171
171
171
14
49
405
310
700
-
3
-
703
427
427
-10
-
1,120
786
7,002
9,949
SECTION 2.2 (CONTINUED)
IMPAIRMENT
ACCOUNTING ESTIMATES
AND JUDGEMENTS
Identification of cash-generating units
The Group’s management structure reflects the
geographical segments, cf. section 1.1, and decisions
are made by the regional managements responsible
for performance, operating investments and growth
initiatives in their respective regions.
There is significant vertical integration of the
production, logistics and sales functions, supporting
and promoting optimisations across the Group or
within regions.
Assets, other than goodwill and brands with regional
and global presence, are allocated to individual cash-
generating units (CGUs), being the level at which the
assets generate largely independent cash inflows. As
the Group operates with local sales and production
organisations, the cash inflows are generated mostly
locally, and the CGUs are therefore usually identified
at country level.
The determination of CGU allocation is made, and
cash inflows are assessed in connection with the
purchase price allocation within 12 months from the
date of acquisition.
Goodwill
Goodwill does not generate largely independent cash
inflows on its own and is therefore allocated to the
Group’s geographical segments, which is the level at
which it is monitored for internal management
purposes.
At the time of acquisition of entities, goodwill is
allocated to a CGU. The structure and groups of CGUs
are reassessed every year. The Group gained control
of Waterloo Brewing Ltd. and Jing-A Group in 2023.
The goodwill recognised on the acquisition of
Waterloo Brewing Ltd. was allocated to the Central &
Eastern Europe CGU, and the goodwill recognised on
the Jing-A Group acquisition was allocated to the Asia
CGU.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
78
For investments in associates, examples of indications
of impairment are loss-making activities or significant
changes in the business environment.
ACCOUNTING
POLICIES
Goodwill and brands with indefinite useful life are
subject to an annual impairment test, performed
initially before the end of the year of acquisition. The
test is performed at the level where cash flows are
considered to be generated: either at CGU level or at
the level of a group of CGUs. All assets are tested if
an event or circumstance indicates that the carrying
amount may not be recoverable. If an asset’s carrying
amount exceeds its recoverable amount, an
impairment loss is recognised. The recoverable
amount is the higher of the asset’s fair value less
costs of disposal and its value in use.
For all assets, the recoverable amount is assessed
based on budget and target plan with reference to the
expected future net cash flows. The assessment is
based on the lowest CGU affected by the changes
that indicate impairment. The cash flow is discounted
by a rate adjusted for any risk specific to the asset, if
relevant to the calculation method applied.
Impairment losses on goodwill and brands, significant
losses on property, plant and equipment, investments
in associates, and losses arising on significant
restructurings of processes and structural adjustments
are recognised as special items. Minor losses are
recognised in the income statement in the relevant
line item.
Impairment of goodwill is not reversed. Impairment of
other assets is reversed only to the extent of changes
in the assumptions and estimates underlying the
impairment calculation. Impairment is only reversed
to the extent that the asset’s new carrying amount
does not exceed the carrying amount of the asset
after amortisation/depreciation had the asset not
been impaired.
2.2.3 IMPAIRMENT TEST OF GOODWILL
The carrying amount of goodwill
allocated to groups of CGUs
DKK million
Western Europe
Asia
Central & Eastern Europe
Total
2023
20,480
14,396
3,439
38,315
2022
20,241
15,258
2,954
38,453
The impairment tests prepared at year-end
2023 did not identify any indication of
impairment of goodwill.
Estimating expected cash flow involves
developing multiple probability-weighted
scenarios to reflect different outcomes in terms
of timing and amount. Measurement of the
forecast period growth rates reflects risk
adjustments made to calculate the expected
cash flows.
Entities classified as held for sale and measured at
the lower of carrying amount and fair value less costs
of disposal are removed from the CGU to which they
are allocated at the time of classification as held for
sale.
Brands
Cash flows for brands are separately identifiable and
brands are therefore tested individually for
impairment. This test is performed in addition to the
test for impairment of goodwill.
The following brands are considered significant when
comparing their carrying amount with the total
carrying amount of brands with indefinite useful life:
• International brands
• Kronenbourg 1664
• Chongqing
International brands is a group of brands recognised
in connection with the acquisition of the 40% non-
controlling interest in Carlsberg Breweries A/S and
allocated to Western Europe. The carrying amount is
not allocated to individual brands.
Corporate assets
The Group has identified capitalised software relating
to the Group’s ERP systems as corporate assets, and
as such these are peripheral to the generation of cash
inflow. The Group’s ERP landscape is closely linked to
the internal management structure, and the identified
assets are therefore tested for impairment at the CGU
level to which goodwill is allocated.
Other non-current assets
Other non-current assets are tested for impairment
when indications of impairment exist.
For property, plant and equipment, management
performs an annual assessment of the assets’ future
application, for example in relation to changes in
production structure, restructurings or brewery
closures.
Key considerations in impairment tests
Goodwill
Brands
CGU level of test
Geographical segment
Individual brand
Method to estimate recoverable amount
Value in use
Fair value less cost of disposal
Method to estimate present value of
future cash flows
Expected value approach: multiple
probability-weighted cash flows
Traditional approach: single most
likely future cash flows
Discount rate
Risk-free rate
Risk-adjusted rate
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
79
SECTION 2.2 (CONTINUED)
IMPAIRMENT
Key assumptions
2023
Western
Europe
Asia
Central &
Eastern
Europe
2022
Western
Europe
Asia
Central &
Eastern
Europe
Forecast
cash flow
growth
Terminal
period
growth
Pre-tax
discount
rate
-17.0%
-16.2%
0.5%
1.0%
3.4%
4.3%
-0.9%
2.0%
8.2%
-11.4%
-12.7%
0.5%
1.0%
3.0%
4.5%
-21.4%
2.0%
9.8%
The average cash flow growth in the forecast
period reflects the significant risk adjustments
included in the forecast specifically for the
impairment test.
Potential upsides are not identified and
adjusted in the cash flows used for impairment
testing. Growth is projected in nominal terms
and therefore does not translate into cash flow
at the same growth rate in the Group’s
presentation currency, DKK.
ACCOUNTING ESTIMATES
AND JUDGEMENTS
Goodwill
The value in use is the discounted value of the
expected future risk-adjusted cash flows. This involves
developing multiple probability-weighted scenarios to
reflect different outcomes in terms of timing and
amount.
Key assumptions
The cash flow is based on the budget and target plans
for the next three years. Cash flows beyond the three-
year period are extrapolated using the terminal period
growth rate. The budget and plans for 2024-2026
represent management’s best estimate of the impact
from the significant inflation in our cost base and
increased interest rates.
The probability weighting applied is based on past
experience and the uncertainty of the prepared
budget and target plans. Potential upsides and
downsides identified during the budget process and in
the daily business are reflected in the future cash flow
scenarios for each CGU.
The risk-adjusted cash flows are discounted using a
rate that reflects the risk-free interest rate for each
CGU. The interest rates used in the impairment tests
are based on observable market data. Please refer to
the description of discount rates in section 2.2.4.
The key assumptions on which management bases its
cash flow projections are:
• Volumes
• Sales prices
• Input costs
• Operating investments
• Terminal period growth
The assumptions are determined at CGU level and are
based on past experience, external sources of
information and industry-relevant observations for
each CGU. Local conditions, such as expected
developments in macroeconomic and market
conditions specific to the individual CGUs, are
considered. The assumptions are challenged and
verified by management at CGU and Group level.
The budget and target plan processes consider events
or circumstances that are relevant to reliably
projecting the short-term performance of each CGU.
Examples include significant campaign activities,
changes in excise duties etc., which may have a short-
term impact but are non-recurring. Given their short-
term nature, they are not taken into consideration
when estimating the terminal period growth rate.
Volumes
Projections are based on past experience, external
market data, planned commercial initiatives, such as
marketing campaigns and sponsorships, and the
expected impact on consumer demand and the level
of premiumisation. If relevant, the projections are
adjusted for the expected changes in the level of
premiumisation. No changes in market share are
assumed in the medium or long term.
Demographic expectations general to the industry,
such as the development in population, consumption
levels, generation-shift patterns, rate of urbanisation
and macroeconomic trends, are also considered in
medium- and long-term projections.
Events and circumstances can impact the timing of
volumes entering the market. These include excessive
stocking related to an increase in excise duties,
campaign activities, and the timing of national
holidays and festivals. Such short-term effects are not
material to volume projections and do not impact the
long-term projections.
Sales prices
The level of market premiumisation and the locally
available portfolio are key drivers in identifying price
points. When planning pricing structures, factors
including price elasticity, local competition and
inflation expectations can also impact the projection.
Increases in excise duties are typically passed on to
the customers immediately or with a delay of no
more than a few months. Since the increase is a pass-
through cost and thereby compensated for by price
increases at the time of implementation, it does not
impact the long-term sales price growth and is
therefore not taken into consideration in the
projections unless circumstances specifically indicate
otherwise. No changes to duties in the short or
medium term are taken into consideration unless
there is a firm plan to introduce changes.
Recent significant inflationary pressure has meant
revenue growth compensating for rising input costs,
especially in Europe. The short- and medium-term
forecast includes the risk of delays in increasing sales
prices to compensate for future rises in input costs.
Input costs
Input costs in the budget and target plans are based
on past experience and on:
• Contracted raw and packaging materials
• Contracted services within sales, marketing,
production and logistics
• Planned commercial investments
• Cost optimisations not related to restructurings
• Expected inflation
The recent years’ elevated level of inflation has
increased the overall input cost level, especially in
Europe. The short- and medium-term forecast
incorporates continued pressure on input costs.
In the long term, projections follow the level of
inflation unless long-term contracts are in place.
Operating investments
Projections are based on past experience of the level
of necessary maintenance of existing production
capacity, including replacement of parts. This also
includes scheduled production line overhauls and
improvements to existing equipment. Capacity
increases and new equipment are not included.
Terminal period growth
Growth rates are projected to be equal to or below
the expected rate of general inflation and assume no
nominal economic growth. The projected growth rates
and the discount rates applied are compared to
ensure a sensible correlation between the two.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
80
SECTION 2.2 (CONTINUED)
IMPAIRMENT
2.2.4 IMPAIRMENT TEST OF BRANDS
In 2023, significant brands represented 66%
(2022: 62%) of the total carrying amount of
brands with indefinite useful life.
Brands with indefinite useful life
DKK million
International brands
Kronenbourg 1664
Chongqing
Significant brands
Western Europe
Asia
Central & Eastern Europe
Not allocated
Other brands
Total brands
2023
3,000
1,950
1,293
6,243
1,028
363
920
945
3,256
9,499
2022
3,000
1,948
954
5,902
1,318
503
846
941
3,608
9,510
Other brands comprise a total of 20 brands
(2022: 19 brands) that are not individually
material compared with the total carrying
amount.
Impairment of brands in Western Europe
In the UK, the ale category has been severely
impacted by the COVID-19 pandemic and
secular trends, and the long-term expectations
for the ale brands was therefore updated,
leading to the recognition of impairment losses
of DKK 305m.
Impairment of brands in Central & Eastern
Europe
A local Lithuanian mainstream brand has
experienced a decline in exports, resulting in
impairment losses of DKK 70m.
Brand rights in Central & Eastern Europe for
the use of brands from the discontinued
operation in Russia were unilaterally
terminated by Carlsberg, resulting in
recognition of impairment losses of DKK 53m.
Impairment of brands in Asia
In Cambodia our business operates in a very
challenging environment both in terms of
competitive conditions and consumer
sentiment. In 2020, this led to the recognition
of an impairment loss of DKK 200m on the
local Angkor brand.
The beer market has remained weak and is still
far from having fully recovered to its 2019 level
before COVID-19. In addition, a change in
consumer preference has resulted in a decline in
volumes and margins, in particular for the beer
category.
This led to a reassessment of the recoverable
amount of the assets in the operation, including
the brand, and resulted in the full write-down of
the remaining carrying amount of the brand of
DKK 97m.
The Chinese mainstream brand Chongqing was
last impaired in 2016, following sales declines
due to premiumisation in the Chinese market.
Since then, brand volumes have recovered
significantly, and expectations for the
mainstream category in China have improved.
As a result, impairments of DKK 400m were
reversed.
ACCOUNTING ESTIMATES
AND JUDGEMENTS
Brands
The test for impairment of brands is performed using
the relief from royalty method and is based on the
expected future cash flows generated from the
royalty payments avoided for the individual brand for
the next 10 years and projections for subsequent
years.
Key assumptions
2023
International brands
Kronenbourg 1664
Chongqing
2022
International brands
Kronenbourg 1664
Chongqing
Average
revenue
growth
Terminal
period
growth
Pre-tax
discount
rate
Post-tax
discount
rate
The risk-free cash flows are discounted using a rate
reflecting the risk-free interest rate with the addition
of the risk premium associated with the individual
brand.
2.6%
2.8%
2.0%
2.4%
2.4%
0.1%
1.9%
1.6%
1.5%
1.9%
1.6%
1.0%
6.9%
7.2%
7.8%
6.7%
6.6%
6.7%
6.6%
6.7%
7.4%
6.5%
6.4%
6.4%
Key assumptions
The key assumptions on which management bases its
cash flow projection include the expected useful life,
revenue growth, a theoretical tax amortisation
benefit, the royalty rate and the discount rate.
Expected useful life
Management has assessed that the value of brands
with indefinite useful life can be maintained for an
indefinite period, as these are well-established brands
in their markets, having existed for decades or even
centuries. The beer industry is characterised as being
very stable with consistent consumer demand and a
predictable competitive environment, and is expected
to be profitable for the foreseeable future. Control of
the brands is legally established and enforceable
indefinitely.
In management’s opinion, the risk of the useful life of
these brands becoming finite is minimal because of
their individual market positions and because current
and planned marketing initiatives are expected to
sustain their useful life.
Revenue growth
At the time of acquisition of any individual brand, a
revenue growth curve is forecast based on a long-
term strategic view of the risk and opportunities
relevant to the brand. The curve is projected for a 10-
year horizon. This horizon reliably reflects the lengthy
process of implementing brand strategies to support a
brand occupying its intended place in the Group’s
portfolio. The forecast period applied is comparable to
the common term of the majority of licence
agreements to which the Group is party.
In the local markets, the product portfolio usually
consists of local power brands and international
premium brands. When projecting revenue growth for
local brands, in addition to their commercial strength
– such as market share and segment position – the
forecast takes into consideration the demographics of
the primary markets, including expected
developments in population, consumption levels,
generation-shift patterns, rate of urbanisation, beer
market maturity, level of premiumisation,
circumstances generally limiting the growth
opportunities for alcoholic beverages etc.
For brands with global or regional presence, enhanced
investments in product development and marketing
are expected. The expected growth rate for these
brands is generally higher than for more localised
brands and is usually highest early in the 10-year
period.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
81
SECTION 2.2 (CONTINUED)
IMPAIRMENT
Depending on the nominal growth expectations for
the individual brand, the revenue growth in individual
years may be above, equal to or below the forecast
inflation level in the markets where the brand is
present.
When preparing budgets, consideration is given to
events or circumstances that are relevant to reliably
projecting the short-term performance of each brand.
Examples include significant campaign activities,
changes in excise duties etc., which may have a short-
term impact but are non-recurring and quickly
absorbed by the business. Since the impact is not
material to the long-term projections, it is not taken
into consideration when estimating the long-term and
terminal period growth rates. Please refer to the
description of the impact of increases in excise duties
in the description of sales prices in section 2.2.3.
Royalty rates
International, premium and
speciality beers
Strong regional and national brands
Local and mainstream brands
3.5-7.5%
3.0-5.0%
2.0-3.5%
Discount rates
The discount rate is a weighted average cost of
capital (WACC) that reflects the risk-free interest rate
with the addition of a risk premium relevant to each
brand.
The risk-free interest rates used in the impairment
tests are based on observed market data. For
countries where long-term risk-free interest rates are
not observable or valid due to specific national or
macroeconomic conditions, the interest rate is
estimated based on observations from other markets
and/or long-term expectations expressed by
international financial institutions considered reliable
by the Group.
Tax benefit
The theoretical tax benefit applied in the test uses tax
rates and amortisation periods based on current
legislation. The impairment test applies tax rates in
the range of 15-31% and amortisation periods of 5-20
years.
The added credit risk premium (spread) for the risk-
free interest rate is fixed at market price or slightly
higher, reflecting the expected long-term market price.
The aggregate interest rate, including spread, thereby
reflects the long-term interest rate applicable to the
Group’s investments in the individual markets.
Royalty rate
Royalties generated by a brand are based on the
Group’s total income from the brand and are earned
globally, i.e. the income is also earned outside the
CGU that owns the brand. If external licence
agreements for the brand already exist, the market
terms of such agreements are taken into
consideration when assessing the royalty rate that the
brand is expected to generate in a transaction with
independent parties. The royalty rate is based on the
actual market position of the individual brand in the
global, regional and local markets, and assumes a 10-
year horizon. This term is common to the beverage
industry when licensing brands.
For some brands, the share of the total beer market
profit exceeds the volume share to an extent that
creates significant market entry barriers for competing
brands and justifies a higher royalty rate.
2.2.5 IMPAIRMENT OF OTHER ASSETS
In 2023, impairment losses were recognised on
intangible assets, DKK 46m, property, plant and
equipment, DKK 171m, and other non-current
assets, DKK 63m, totalling DKK 280m.
Impairment of non-current assets in Cambodia,
DKK 152m
As mentioned above in section 2.2.4, our
business in Cambodia is facing challenges,
which led to a reassessment of the recoverable
amount of the assets in the operation.
The reassessment showed that DKK 103m of
property, plant and equipment was lying idle
and this has therefore been impaired.
Consequently, a local investment of DKK 49m
in a joint venture manufacturing can bodies has
also been impaired.
Other impairments, DKK 128m
Impairment losses of DKK 46m on other
intangible assets primarily relate to centrally
owned IT assets. Other impairment losses of
DKK 68m on property, plant and equipment
related partly to flooding in China. The decision
to close Ringwood Brewery in the UK resulted
in a write-down of assets held for sale of DKK
14m.
2.2.6 SENSITIVITY TESTS
Sensitivity tests have been performed to
determine the lowest forecast and terminal
period growth rates and/or highest discount
rates that can occur in the groups of CGUs and
brands with indefinite useful life without
leading to any impairment loss.
Due to a challenging macroeconomic situation
in some CGUs and groups of CGUs, the Group
performed additional sensitivity tests in 2023 to
ensure that no potential impairment had been
overlooked. These did not identify any potential
impairment.
GOODWILL
The test for impairment of goodwill did not
identify any CGUs or groups of CGUs to which
goodwill is allocated where a reasonably
possible negative change in a key assumption
would cause the carrying amount to exceed the
recoverable amount.
BRANDS
For brands that were previously written down,
a reasonably possible negative change in a key
assumption would cause the carrying amount
of these brands to exceed the recoverable
amount. However, management considers the
risk of a significant write-down on these brands
to be low.
Key assumptions
The key assumptions relevant to the
assessment of the recoverable amount are:
• Useful lifetime
• Volume and price
• Royalty rate
• Discount rate
The assumptions for volume and price are
closely linked, which, together with the
presence of multiple sub-brands in various
geographies within each brand, makes
individual sensitivity testing on the basis of
these two assumptions highly impractical.
Instead, sensitivity testing is performed for the
overall revenue growth rate, in both the
forecast period and the terminal period.
SECTION 2.3
INTANGIBLE ASSETS
AND PROPERTY,
PLANT AND
EQUIPMENT
DKK million
2023
Cost
Cost at 1 January
Acquisition of entities
Additions, including right-of-use assets
Disposals
Transfers
Foreign exchange adjustments etc.
Cost at 31 December
Amortisation, depreciation and impairment losses
Amortisation, depreciation and impairment losses at 1 January
2,392
Disposals
Amortisation and depreciation
Impairment losses
Reversal of impairment losses
Transfers
Foreign exchange adjustments etc.
Amortisation, depreciation and impairment losses at 31 December
Carrying amount at 31 December
Right-of-use assets included at 31 December
Amortisation and depreciation
Carrying amount at 31 December
-
-
-
-
-
-86
2,306
38,315
-
-
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
82
Intangible assets
Property, plant and equipment
Asset base
Goodwill
Brands
Other
intangible
assets
Total
Land and
buildings
Plant and
machinery
Other
equipment,
fixtures and
fittings
Total
Total
40,845
645
-
-
-
-869
40,621
11,977
147
74
-2
-
-214
11,982
2,254
-
16
525
-400
-
-115
2,280
9,702
-
-
4,713
15
276
-86
4
-70
4,852
3,666
-85
172
46
-
-
-30
3,769
1,083
-
-
57,535
17,803
26,232
807
350
-88
4
-1,153
57,455
8,312
-85
188
571
-400
-
-231
8,355
49,100
-
-
151
506
-252
386
-141
269
2,271
-322
-539
-340
18,453
27,571
7,954
-170
663
40
-
-2
-3
8,482
9,971
184
1,156
16,597
-299
1,327
85
-
6
-121
17,595
9,976
14
79
14,460
11
2,210
-1,821
123
-339
14,644
10,265
-1,733
1,803
46
-
-1
-194
10,186
4,458
251
513
58,495
431
4,987
-2,395
-30
-820
60,668
34,816
-2,202
3,793
171
-
3
-318
36,263
24,405
449
1,748
116,030
1,238
5,337
-2,483
-26
-1,973
118,123
43,128
-2,287
3,981
742
-400
3
-549
44,618
73,505
449
1,748
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
83
SECTION 2.3 (CONTINUED)
INTANGIBLE ASSETS
AND PROPERTY,
PLANT AND
EQUIPMENT
DKK million
2022
Cost
Intangible assets
Property, plant and equipment
Asset base
Goodwill
Brands
Other
intangible
assets
Total
Land and
buildings
Plant and
machinery
Other
equipment,
fixtures and
fittings
Total
Total
Cost at 1 January
Additions, including right-of-use assets
Disposals
Transfers
Transferred to assets in discontinued operations
Foreign exchange adjustments etc.
Cost at 31 December
Amortisation, depreciation and impairment losses
Amortisation, depreciation and impairment losses at 1 January
Disposals
Amortisation and depreciation
Impairment losses
Transferred to assets in discontinued operations
Foreign exchange adjustments etc.
Amortisation, depreciation and impairment losses at 31 December
Carrying amount at 31 December
Right-of-use assets included at 31 December
Amortisation and depreciation
Carrying amount at 31 December
54,227
26,181
-
-
-
-9,551
-3,831
40,845
1,743
-
-
700
-
-51
2,392
38,453
-
-
-
-32
-
-12,466
-1,706
11,977
11,231
-32
21
-
-7,934
-1,032
2,254
9,723
-
-
5,054
345
-165
-
-433
-88
4,713
4,013
-163
208
3
-336
-59
3,666
1,047
-
-
85,462
345
-197
-
-22,450
-5,625
57,535
16,987
-195
229
703
-8,270
-1,142
8,312
49,223
-
-
19,839
611
-373
201
-2,089
-386
17,803
8,509
-142
638
2
-898
-155
7,954
9,849
167
1,089
30,272
2,013
-582
-360
-3,929
-1,182
26,232
19,653
-529
1,356
106
-3,204
-785
16,597
9,635
5
11
15,729
1,992
-1,502
159
-1,322
-596
14,460
11,030
-1,442
1,719
319
-957
-404
10,265
4,195
214
440
65,840
4,616
-2,457
-
-7,340
-2,164
58,495
39,192
-2,113
3,713
427
-5,059
-1,344
34,816
23,679
386
1,540
151,302
4,961
-2,654
-
-29,790
-7,789
116,030
56,179
-2,308
3,942
1,130
-13,329
-2,486
43,128
72,902
386
1,540
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
84
SECTION 2.3 (CONTINUED)
INTANGIBLE ASSETS
AND PROPERTY,
PLANT AND
EQUIPMENT
Property, plant and equipment under
construction amounted to DKK 1,728m (2022:
DKK 1,197m). Property, plant and equipment
under construction are recognised in plant and
machinery until completion.
Other equipment, fixtures and fittings include
transport, office and draught beer equipment,
fridges and returnable packaging materials.
Other intangible assets include software, land
use rights and beer delivery rights.
RIGHT-OF-USE ASSETS
The Group leases various properties and
warehouses, production equipment, cars and
trucks. Leases are negotiated on an individual
basis and contain a wide range of different
terms and conditions.
At 31 December 2023, the carrying amount of
right-of-use assets was DKK 1,748m (2022:
DKK 1,540m). During the year, additions
amounted to DKK 721m (2022: DKK 706m) and
depreciation to DKK 449m (2022: DKK 386m).
Lease expenses recognised in the income
statement, relating to short-term leases and
leases of low-value assets, amounted to
DKK 48m (2022: DKK 49m). Such contracts
usually comprise the lease of copy and printing
machines, coffee machines, small IT devices
and similar equipment.
For disclosures of the interest expenses, cash
flow and lease liabilities, please refer to
sections 4.1, 4.5.1 and 4.8.
Cash flow from disposal of property, plant
and equipment and intangible assets was
DKK 115m (2022: DKK 414m).
ACCOUNTING ESTIMATES
AND JUDGEMENTS
Useful life and residual value of intangible
assets with finite useful life and property,
plant and equipment
Useful life and residual value are initially assessed
both in acquisitions and in business combinations.
Management assesses brands and property, plant and
equipment for changes in useful life. If an indication of
a reduction in the value or useful life exists, such as
changes in production structure, restructuring and
brewery closures, the asset is tested for impairment. If
necessary, the asset is written down or the
amortisation/depreciation period is reassessed and, if
necessary, adjusted in line with the asset’s changed
useful life. When changing the amortisation or
depreciation period due to a change in the useful life,
the effect on amortisation/depreciation is recognised
prospectively as a change in accounting estimates.
Management assesses the local business model to
determine whether the Group has a legal or
constructive obligation to accept returns of packaging
materials from the market and the level of control.
CAPITAL COMMITMENTS
The Group has entered into various capital
commitments that will not take effect until
after the reporting date and have therefore not
been recognised in the consolidated financial
statements. Capital commitments in 2023
amounted to DKK 144m (2022: DKK 100m).
Capital expenditure
DKK million
Additions, including right-of-use assets
Less right-of-use assets
Additions
Amortisation, depreciation and impairment losses
Intangible assets
Property, plant and equipment
DKK million
Cost of sales
Sales and distribution expenses
Administrative expenses
Special items
Total
2023
2022¹
49
117
68
125
359
47
65
108
700
920
2023
2,362
1,190
290
122
3,964
2022¹
2,489
1,211
267
96
4,063
Total
Additions payable at the end of the reporting period
Capitalised depreciations
Capitalised interest expenses
Transferred to assets in discontinued operations
Acquisition of property, plant and equipment and intangible assets
Gain/loss on disposal of assets
DKK million
Gain on disposal of property, plant and equipment and intangible assets
Loss on disposal of property, plant and equipment and intangible assets
¹ Loss from the discontinued operation: intangible assets DKK 12m, and property, plant and equipment DKK 77m.
¹ Loss from the discontinued operation DKK 12m (2022: DKK 4m).
This entails the Group considering, among other
things, the return rate and the annual circulation in
the individual markets. These factors are assessed
annually. Returnable packaging materials controlled
by the Group are capitalised as property, plant and
equipment and depreciated over the expected useful
life.
Lease and service contracts
At inception of a contract, management assesses
whether the contract is or contains a lease.
Management considers the substance of any service
being rendered to classify the arrangement as either a
lease or a service contract. Particular importance is
attached to whether fulfilment of the contract
depends on the use of specific assets. The assessment
involves judgement of whether the Group obtains
substantially all the economic benefits from the use
of the specified asset and whether it has the right to
direct how and for what purpose the asset is used. If
these criteria are satisfied at the commencement date,
a right-of-use asset and a lease liability are
recognised in the statement of financial position.
2023
5,337
-721
4,616
-363
-2
-8
-
4,243
2022
4,961
-706
4,255
-145
-
-
-92
4,018
2023¹
2022¹
74
-27
47
110
-31
79
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
85
Depreciation is calculated on the basis of the cost less
the residual value and impairment losses.
Impairment
Impairment losses of a non-recurring nature are
recognised under special items.
SECTION 2.3 (CONTINUED)
INTANGIBLE ASSETS
AND PROPERTY,
PLANT AND
EQUIPMENT
In determining the lease term, management considers
all the facts and circumstances that create an
economic incentive to exercise an extension option or
not to exercise a termination option. Extension or
termination options are only included in the lease
term if the lease is reasonably certain to be extended
or not terminated. The term is reassessed if a
significant change in circumstances occurs. The
assessment of purchase options follows the same
principles as those applied for extension options.
The lease payment for cars and trucks often includes
costs of service and insurance. If these costs are not
objectively assessable, the Group estimates the costs
when separating the service component from the
lease.
ACCOUNTING
POLICIES
Cost
Intangible assets and property, plant and equipment
are initially recognised at cost and subsequently
measured at cost less accumulated amortisation or
depreciation and impairment losses.
Cost comprises the purchase price and costs directly
attributable to the acquisition until the date when the
asset is available for use. The cost of acquired brand
rights is accounted for using the accumulated cost
approach if the total consideration includes an earn-
out dependent on the brands’ future performance.
The cost of self-constructed assets comprises direct
and indirect costs of materials, components, sub-
suppliers, wages and salaries, and capitalised
borrowing costs on specific or general borrowings
attributable to the construction of the asset, and is
included in plant and machinery.
Research and development costs are recognised in the
income statement as incurred. Development costs of
intangible assets, for example software, are
recognised as other intangible assets if the costs are
expected to generate future economic benefits.
For assets acquired in business combinations,
including brands and property, plant and equipment,
cost at initial recognition is determined by estimating
the fair value of the individual assets in the purchase
price allocation.
Goodwill is only acquired in business combinations
and is measured in the purchase price allocation.
Goodwill is not amortised but is subject to an annual
impairment test, cf. section 2.2.
Amortisation and depreciation are recognised as
cost of sales, sales and distribution expenses, and
administrative expenses depending on the use of
the asset.
The expected useful life is as follows:
Brands with finite
useful life
Software
Normally 20 years
Normally 3-5 years. Group-wide
systems developed as an
integrated part of a major
business development
programme: 5-7 years
Depending on contract; if no
contract term has been agreed,
normally not exceeding 5 years
Where individual components of an item of property,
plant and equipment have different useful lives, they
are accounted for as separate items.
Delivery rights
Returnable packaging materials that the Group
controls through a legal or constructive obligation are
capitalised as property, plant and equipment.
Customer
agreements/
relationships
Depending on contract with the
customer; if no contract exists,
normally not exceeding 20 years
Subsequent costs, for example in connection with
replacement of components of property, plant and
equipment, are recognised in the carrying amount of
the asset if it is probable that the costs will result in
future economic benefits for the Group. The replaced
components are derecognised from the statement of
financial position and recognised as an expense in the
income statement. Costs incurred for ordinary repairs
and maintenance are recognised in the income
statement as incurred.
Useful life, amortisation, depreciation and
impairment losses
Useful life and residual value are determined at the
acquisition date and reassessed annually. If the
residual value exceeds the carrying amount,
depreciation is discontinued.
Amortisation and depreciation are recognised on a
straight-line basis over the expected useful life of the
assets, taking into account any residual value. The
expected useful life and residual value are determined
based on past experience and expectations of the
future use of assets.
Buildings
Technical installations
Brewery equipment
20-40 years
15 years
15 years
Filling and bottling equipment
8-15 years
Technical installations in
warehouses
On-trade and distribution
equipment
8 years
5 years
Fixtures and fittings, other plant
and equipment
5-8 years
Returnable packaging materials
3-10 years
Hardware
Land
3-5 years
Not depreciated
Leases
At the commencement date, the Group recognises a
lease liability and a corresponding right-of-use asset
at the same amount, except for short-term leases of
12 months or less and leases of low-value assets.
A right-of-use asset is initially measured at cost,
which consists of the initial lease liability and initial
direct costs less any lease incentives received. The
Group has applied the practical expedient option
allowed under IFRS Accounting Standards by using a
portfolio approach for the recognition of lease
contracts related to assets of the same nature and
with similar lease terms, i.e. cars and trucks.
Subsequently, the right-of-use asset is measured at
cost less depreciation and impairment losses and
adjusted for remeasurement of the lease liability. The
right-of-use asset is depreciated over the earlier of the
lease term and the useful life of the asset. The
impairment testing of right-of-use assets follows the
same principles as those applied for property, plant
and equipment, cf. section 2.2.
Right-of-use assets are recognised as property, plant
and equipment.
The Group has elected not to recognise right-of-use
assets and liabilities for leases with a term of 12
months or less and leases of low-value assets. Lease
payments related to such leases are recognised in the
income statement as an expense on a straight-line
basis over the lease term.
Government grants and other funding
Grants and funding received for the acquisition of
assets and development projects are recognised in the
statement of financial position by deducting the grant
from the carrying amount of the asset. The grant is
recognised in the income statement over the life of
the asset as a reduced depreciation charge.
SECTION 3
SPECIAL ITEMS, PROVISIONS
AND OTHER LIABILITIES
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
86
381m
SPECIAL ITEMS, INCOME
(DKK)
Impacted by the derecognition of loan
and payables to the discontinued
operation in Russia.
-812m
SPECIAL ITEMS,
EXPENSES
(DKK)
Impacted by impairment losses and
reversal on impairment losses,
termination of the Kronenbourg 1664
licensee agreement in the UK and
restructuring costs across the Group.
SECTION 3.1
SPECIAL ITEMS
SPECIAL ITEMS, INCOME
In 2023, a loan of DKK 297m and payables for
brand rights of DKK 53m, totalling DKK 350m,
were derecognised. Both the loan and the
payables were owed to the discontinued
operation in Russia prior to the issuance of the
presidential decree on 16 July 2023.
In 2022, the Group recognised reversal of
provisions made in purchase price allocations in
prior years, mainly in Asia, of DKK 217m.
SPECIAL ITEMS, EXPENSES
These comprise impairment losses of DKK
305m on brands in Western Europe, DKK 123m
in Central & Eastern Europe and DKK 97m in
Asia, in total DKK 525m. Impairment losses of
DKK 400m previously recognised on brands in
Asia were reversed.
In Cambodia our business was negatively
impacted by the challenging environment,
resulting in the recognition of impairment
losses of DKK 152m on non-current assets.
Impairment losses of DKK 76m were recognised
on receivables from the discontinued operation
in Russia that are no longer expected to be
received.
Special items
DKK million
Special items, income
Derecognition of loan and payables to the discontinued operation in Russia
Revaluation gain on acquisition of Jing-A Group
Gain on disposal of entities
Reversal of provisions made in purchase price allocations in prior years
Income
Special items, expenses
Impairment of goodwill
Impairment of brands
Reversal of impairment losses
Impairment of non-current assets in Cambodia
Impairment of property, plant and equipment
Impairment of receivables from the discontinued operation in Russia
Reversal of provisions made in prior years
Cost of termination of a licensee agreement
Restructuring projects and provisions
Costs related to acquisition and disposal of entities etc.
Impairment of assets and other war-related costs in Ukraine
Donations
Other expenses
Expenses
Special items, net
Section
2023
2022
5.1
5.3
2.2.3
2.2.4
2.2.4
2.2.5
5.1
3.2
350
20
11
-
381
-
-525
400
-152
-33
-76
100
-196
-141
-117
-28
-2
-42
-812
-431
-
-
-
217
217
-700
-
10
-
-74
-
37
-
-76
-92
-79
-27
-
-1,001
-784
Provisions of DKK 100m recognised in prior
years for legal claims that did not materialise
(2022: DKK 37m) were reversed.
The Group terminated the licensee agreement
for Kronenbourg 1664 in the UK, resulting in a
cost of DKK 196m.
SECTION 3.1 (CONTINUED)
SPECIAL ITEMS
The Group continued to carry out various
restructuring projects as part of the ongoing
focus on cost and efficiency initiatives, resulting
in a cost of DKK 141m (2022: DKK 76m). Other
impairment losses of DKK 33m on property,
plant and equipment, partly related to flooding
in China and the decision to close Ringwood
Brewery in the UK. In 2022, the impairment
losses included DKK 74m on property, plant
and equipment in Asia.
In 2022, the Group recognised a write-down of
goodwill allocated to the Central & Eastern
Europe region of DKK 700m. Additionally, as a
consequence of the war in Ukraine, impairment
of trade receivables, inventories and plant and
equipment was recognised at DKK 79m.
ACCOUNTING ESTIMATES
AND JUDGEMENTS
The use of special items entails management
judgement in the separation from ordinary items.
Management carefully considers individual items and
projects (including restructurings) in order to ensure
the correct distinction and split between operating
activities and significant income and expenses of a
special nature.
Impact of special items on operating profit
Management initially assesses the entire restructuring
project and recognises all present costs of the project.
The projects are assessed on an ongoing basis, with
additional costs possibly being incurred during the
lifetime of the project.
The estimate includes expenses related to termination
of employees, onerous contracts, break fees and other
obligations arising in connection with restructurings.
Management reassesses the useful life and residual
value of non-current assets used in an entity
undergoing restructuring.
ACCOUNTING
POLICIES
Special items include significant income and expenses
of a special nature in relation to the Group’s revenue-
generating activities that cannot be attributed directly
to the Group’s ordinary operating activities.
Special items also include significant non-recurring
items, including termination benefits related to
retirement of members of the Executive Committee,
impairment of goodwill and brands, significant
provisions in relation to certain disputes and lawsuits,
gains and losses on the disposal of activities and
associates, revaluation of the shareholding in an
entity held immediately before a step acquisition or
cessation of consolidation of that entity, and
transaction costs in a business combination.
Significant restructuring of processes and structural
adjustments are included in special items. Special
items are shown separately from the Group’s ordinary
operations to facilitate a better understanding of the
Group’s financial performance.
DKK million
2023
2022
If special items had been recognised in operating profit before special items,
they would have been included in the following line items:
Cost of sales
Sales and distribution expenses
Administrative expenses
Other operating activities, net
Impairment of goodwill
Financial Items
Special items, net
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
87
SECTION 3.2
PROVISIONS
Restructuring provisions relate to termination
benefits to employees made redundant,
primarily as a result of a restructuring project
accounted for as special items.
The restructuring provision of DKK 85m in 2023
primarily relates to various projects mainly
concerning centralised Group functions.
Provisions for onerous contracts primarily relate
to contract brewing in Asia and are expected to
be utilised by 2028.
Other provisions of DKK 2,058m include
ongoing disputes and lawsuits of varying
content and scope, provisions made in
connection with purchase price allocations (PPA
provisions) and employee obligations other
than retirement benefits.
Timing of settlement of ongoing disputes,
lawsuits and PPA provisions cannot be
determined, whereas the remaining liabilities
are expected to be settled in one to two years.
Total provisions were impacted by settlement
of the fine of DKK 372m received in the
competition case in Germany, cf. section 3.4,
and reversal of other legal and contractual
obligations that did not materialise, in total
DKK 619m.
ACCOUNTING ESTIMATES
AND JUDGEMENTS
In connection with restructurings, management
assesses the timing of the costs to be incurred, which
influences the classification as current or non-current
liabilities.
Provision for onerous contracts is based on agreed
terms with the other party and expected fulfilment of
the contract, based on the current estimate of
volumes, use of raw materials etc.
DKK million
2023
Provisions at 1 January 2023
Additional provisions recognised
Used during the year
Reversal of unused provisions
Transfers
Discounting
Foreign exchange adjustments etc.
Provisions at 31 December 2023
Classified as
-98
-5
-15
34
-501
-6
58
2
-
16
-700
Non-current provisions
-
Current provisions
-431
-784
Total
Restructurings
Onerous
contracts
84
104
-103
-
-
-
-
85
1
84
85
486
75
-20
-156
-
5
-24
366
326
40
366
Other
2,541
503
-577
-463
63
17
-26
2,058
1,238
820
2,058
Total
3,111
682
-700
-619
63
22
-50
2,509
1,565
944
2,509
SECTION 3.2 (CONTINUED)
PROVISIONS
SECTION 3.3
OTHER LIABILITIES
Management assesses provisions, contingent assets
and liabilities, and the likely outcome of pending or
probable lawsuits etc. on an ongoing basis. The
outcome depends on future events, which are by
nature uncertain. In assessing the likely outcome of
lawsuits and tax disputes etc., management relies on
external legal advice and established precedents.
ACCOUNTING
POLICIES
Provisions, including profit-sharing provisions, are
recognised when, as a result of events arising before
or at the reporting date, the Group has a legal or a
constructive obligation and it is probable that there
may be an outflow of economic benefits to settle the
obligation.
DKK million
2023
2022
Classified as
Non-current liabilities
Current liabilities
Total
Other liabilities by origin
Staff costs payable
Excise duties and VAT
payable
Other payables
Deferred income
Contingent consideration
Total
314
13,020
13,334
305
13,503
13,808
2,296
2,335
2,401
2,693
499
5,445
13,334
2,487
2,835
574
5,577
13,808
Provisions are discounted if the effect is material to
the measurement of the liability. The risk-free interest
rate is used as the discount rate.
For a detailed description of contingent
considerations, see section 5.4.
Restructuring costs are recognised when a detailed,
formal restructuring plan has been announced to
those affected no later than at the reporting date. On
acquisition of entities, restructuring provisions in the
acquiree are only included in the opening balance
when the acquiree has a restructuring liability at the
acquisition date.
A provision for onerous contracts is recognised when
the benefits expected to be derived by the Group from
a contract are lower than the unavoidable costs of
meeting its obligations under the contract.
ACCOUNTING
POLICIES
Other liabilities include excise duties (specific taxes
imposed on sales of beer and soft drinks), VAT,
withholding tax, accrued interest and payroll, e.g.
salaries, overtime, vacation and bonus.
Other liabilities (current) are initially recognised at fair
value and subsequently at amortised cost.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
88
In October and November 2021, the Group’s
associate in Portugal, Super Bock Group,
received decisions on the alleged
anticompetitive practice in two ongoing cases.
In the first case the Portuguese Court of Appeal
confirmed the fine of EUR 24m issued by the
competition authority, and in the second case
the Portuguese competition authority imposed
a fine of EUR 33m on Super Bock. Both
decisions have been appealed to the Supreme
Court by Super Bock. Subsequently, on account
of Super Bock’s alleged anticompetitive
practices, a separate private enforcement claim
of EUR 400m was filed by a consumer
protection association against Super Bock for
compensation of Portuguese consumers for
alleged harm. There have been no significant
developments in this case since.
In December 2023, Chongqing Jiawei Beer Co.
Ltd., in which the Group holds a 33%
shareholding, raised a claim for damages of
RMB 631m against Chongqing Brewery Co. Ltd.
for alleged breach of contract in relation to a
contract brewing agreement between the
parties. In June 2022, Chongqing Jiawei Beer
Co. Ltd. had withdrawn previous claims based
on substantially similar allegations. Based on
the facts and evidence currently put forward, it
is not considered likely that the claim will lead
to a negative outcome for the Group.
SECTION 3.4
CONTINGENT
LIABILITIES
The Group operates in very competitive
markets where consolidation is taking place
within the industry and among our customers
and suppliers, all of which influence our
business in different ways.
In the ordinary course of business, the Group is
party to certain lawsuits, disputes etc. of
varying content and scope, some of which are
referred to below. The resolution of these
lawsuits, disputes etc. is associated with
uncertainty, as they depend on relevant
applicable proceedings, such as negotiations
between the parties affected, government
actions and court rulings.
In May 2023, Carlsberg Deutschland was
ordered to pay a fine of EUR 50m (DKK 372m)
for alleged infringement of the competition
rules in 2007. It was decided not to appeal the
decision and the fine was paid in July.
In October 2021, the French competition
authority issued a Statement of Objection
against a large number of FMCG companies,
including three entities in the Group –
Kronenbourg SAS, Carlsberg Breweries A/S and
Carlsberg A/S – for alleged participation in an
anticompetitive agreement not to advertise the
non-use of bisphenol A (BPA). Carlsberg did
not agree with the French competition
authority and prepared its defence in the case
during 2021, which was submitted in the first
quarter of 2022. A decision was issued on 10
January 2024. None of the companies in the
Group were fined by the French competition
authority as the allegations were time-barred.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
89
GUARANTEES AND COMMITMENTS
The Group has issued guarantees for third-
party obligations (non-consolidated entities) of
DKK 201m (2022: DKK 205m). No guarantees
have been issued for loans raised by associates.
Certain guarantees etc. are issued in connection
with disposal of entities and activities, and in
connection with on-trade loans. Apart from
items recognised in the statement of financial
position or disclosed in the consolidated
financial statements, these guarantees etc. will
not have a material effect on the Group’s
financial position. Capital commitments, lease
liabilities and service agreements are described
in section 2.3.
arbitration panel must be settled at an amount
determined by a valuer appointed by the
International Chamber of Commerce. The
valuer released the call valuation in July 2023.
Carlsberg is satisfied with the valuation
outcome and subsequently exercised its call
option. The call option will come into effect if
the put valuation is invalidated by the
arbitration tribunal.
In addition to the disputes with our partner in
CSAPL regarding India and Nepal, there is a
dispute with the local 10% shareholder in
Gorkha Brewery, a related party to the Group’s
33% partner in CSAPL. The conclusion of the
put or call option process and the increase to
100% ownership of CSAPL does not include the
10% held locally and would not settle the
dispute with the local shareholder, and Gorkha
Brewery therefore remains not consolidated
until the dispute has been settled separately.
Management and the Group General Councel
continuously assess these risks and their likely
outcome. It is the opinion of management and
the Group General Councel that, apart from
items recognised in the statement of financial
position, the outcome of these lawsuits,
disputes etc. cannot be reliably estimated in
terms of amount or timing or the risk of a
negative outcome is considered to be remote.
The Group does not expect the ongoing
lawsuits and disputes to have a material impact
on the Group’s financial position, net profit or
cash flow, in excess of items recognised in the
statement of financial position.
SECTION 3.4 (CONTINUED)
CONTINGENT
LIABILITIES
For some time, the Group has had serious
disagreements with our partner CSAPL
Holdings Pte Ltd (CSAPLH) in relation to
Carlsberg South Asia Pte Ltd (CSAPL), of which
Carlsberg owns two thirds and CSAPLH the
remaining one third. CSAPL is the holding
company for the businesses in India (100%) and
Nepal (90%). Several issues have previously
been referred to arbitration, including various
allegations relating to governance and breach
of the Shareholders’ Agreement and
governance matters, in all of which Carlsberg
has been completely vindicated. As a result, the
arbitration tribunal in May 2022 awarded
Carlsberg the right to call CSAPLH’s shares in
CSAPL. Carlsberg immediately invoked the right
to begin the call option valuation process, and
CSAPLH subsequently exercised its right under
the Shareholders’ Agreement to begin the put
option valuation process. In accordance with
the Shareholders’ Agreement, the put option
price was determined as the simple average of
two valuations assessed by two independent
external valuers, which are internationally
recognised accounting firms, one appointed by
each shareholder. The put option valuation was
released by the valuers in February 2023,
stating a value for CSAPLH’s shares in CSAPL
of USD 744m. CSAPLH subsequently issued a
formal put notice to sell its 33% shareholding in
CSAPL to the Group at the put option valuation
amount. The put option valuation was referred
to arbitration by the Group, as the valuation is
considered to have been conducted in breach of
the Shareholders’ Agreement. An arbitration
award is expected to be issued in Q4 2024. In
accordance with the Shareholders’ Agreement,
the call option awarded to Carlsberg by the
SECTION 4
FINANCING COSTS, CAPITAL
STRUCTURE AND EQUITY
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
90
22.4bn
NET INTEREST-BEARING DEBT
(DKK)
Gross financial debt amounted to DKK 39.1bn
(2022: DKK 28.6bn). Net interest-bearing debt
was DKK 22.4bn, an increase of DKK 3.0bn
compared with year-end 2022.
The liquidity position remained solid due to the
free cash flow of DKK 4.9bn (free operating
cash flow of DKK 7.5bn) and access to a EUR
2bn credit facility, which was unutilised at 31
December 2023.
The leverage ratio, measured as net interest-
bearing debt to EBITDA, was 1.47x at year-end
(2022: 1.23x), well below our target of below
2.0x.
CHANGES IN NET INTEREST-BEARING DEBT
(DKKbn)
3.2bn
SHARE BUY-BACK (DKK)
During 2023, the Company repurchased shares
worth DKK 3.2bn under the quarterly share
buy-back programmes initiated in 2022 and
2023.
25.7bn
EQUITY (DKK)
Equity amounted to DKK 25.7bn (2022: DKK
34.7bn), DKK 23.2bn of which was attributable
to shareholders in Carlsberg A/S and DKK
2.5bn to non-controlling interests.
The change in equity of DKK -9.0bn was
mainly due to foreign exchange losses on
translation of foreign entities for the period of
DKK 3bn, the dividend payout of DKK 4.8bn
and the share buy-back of DKK 3.2bn.
Profit for the period from continuing activities
was DKK 8.0bn, partly offset by the loss from
discontinued operations, excluding
reclassification of the accumulated currency
translation and hedge losses of DKK 6.3bn. The
reclassification of the currency translation and
hedge losses relating to Russia did not impact
net equity.
-844m
NET FINANCIAL ITEMS (DKK)
Financial items, net, amounted to DKK -844m
(2022: DKK -725m). Excluding currency losses
and fair value adjustments, financial items, net,
amounted to DKK -693m (2022: DKK -506m).
The increase was mainly due to the increase in
interest rates and average net debt.
LEVERAGE RATIO (NIBD/EBITDA)
2019-2020 including Russia. 2021-2023 excluding Russia.
201920202021202220231.01.21.41.61.82.019.3-11.65.90.84.83.20.6-0.622.4NIBD at 1 JanuaryCash flow, operating activitiesInvesting activities,excl. acquisition of entities, netAcquisition of shareholdingsDividends, totalShare buy-backLease liabilities, netOther movementsNIBD at 31 December SECTION 4.1
FINANCIAL INCOME
AND EXPENSES
Interest income primarily relates to interest on
cash and cash equivalents and deposits
measured at amortised cost.
Foreign exchange losses, net, include fair value
adjustments of hedges not designated as
hedging instruments and foreign exchange
losses. The fair value adjustment of hedges not
designated as hedging instruments amounted
to DKK 60m (2022: DKK -121m), cf. section 4.9.
Foreign exchange losses and fair value
adjustments amounted to DKK 151m (2022:
DKK 219m).
Of the net change in fair value of cash flow
hedges transferred or reclassified to the income
statement, DKK -280m (2022: DKK 69m) has
been included in revenue and cost of sales, DKK
-22m in special items (2022: DKK 0m), DKK 0m
(2022: DKK -16m) in financial items, DKK
-545m (2022: DKK 0m) in loss from
discontinued operations, and DKK -18m (2022:
DKK -2m) in intangible assets and property,
plant and equipment.
Foreign exchange adjustments of foreign
entities recognised in other comprehensive
income amounts to DKK 37,781m, cf. section
4.4.4.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
91
FINANCIAL ITEMS, NET (DKKm)
2019-2020 including Russia. 2021-2023 excluding
Russia.
Financial items, net
Financial items, net, excl. fair value and FX
Financial items recognised in the income statement
DKK million
Financial income
Interest income
Interest on plan assets, defined benefit plans
Other
Total
Financial expenses
Interest expenses
Capitalised financial expenses
Foreign exchange losses, net
Interest expenses on obligations, defined benefit plans
Interest expenses, lease liabilities
Bank fees
Other
Total
Financial items, net, recognised in the income statement
Financial items excluding foreign exchange, net
2023
2022
381
309
5
695
-752
8
-151
-339
-32
-142
-131
-1,539
-844
-693
220
120
7
347
-519
2
-219
-158
-23
-78
-77
Financial items recognised in other comprehensive income
DKK million
Foreign exchange adjustments of foreign entities
Foreign currency translation of foreign entities
Reclassification of cumulative translation differences of deconsolidated entities
Total
Fair value adjustments of hedging instruments
Change in fair value of effective portion of cash flow hedges
Change in fair value of cash flow hedges transferred or reclassified to the income statement,
intangible assets and property, plant and equipment
-1,072
Change in fair value of net investment hedges
-725
-506
Total
Financial items, net, recognised in other comprehensive income
2023
2022
-3,143
40,924
37,781
-3,926
-
-3,926
-174
-313
882
212
920
-51
-395
-759
38,701
-4,685
20192020202120222023-800-600-400-2000
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
92
SECTION 4.2
FINANCIAL ASSETS
AND LIABILITIES
SECTION 4.3
NET INTEREST-
BEARING DEBT
SECTION 4.4
CAPITAL
STRUCTURE
DKK million
2023
2022
4.4.1 CAPITAL STRUCTURE
Management regularly assesses whether the
Group’s capital structure is in the interests of
the Group and its shareholders.
The overall objective is to ensure a continued
development and strengthening of the Group’s
capital structure that supports long-term
profitable growth and a solid increase in key
earnings and ratios. This includes assessment of
and decisions on the split of financing between
share capital and borrowings, which is a long-
term strategic decision to be made in
connection with significant investments and
other transactions.
Of the gross financial debt at year-end, 79%
(2022: 80%) was non-current, i.e. with maturity
of more than one year.
Gross financial debt amounted to DKK 39.1bn
(2022: DKK 28.6bn). Non-current borrowings
totalled DKK 30.8bn (2022: DKK 22.9bn) and
current borrowings totalled DKK 8.3bn (2022:
DKK 5.8bn). A EUR 500m EMTN bond
matured in September 2023, and during the
year a total of EUR 2.05bn of EMTN bonds
was issued with maturities in 2026, 2028 and
2033, cf. section 4.5. The Group continuously
assesses the maturity and repayment profile of
its debt, and the high level of refinancing in
2023 should be seen in the light of the EUR 1bn
EMTN bond maturing in May 2024.
The difference of DKK 16.8bn between gross
financial debt and net interest-bearing debt
mainly comprised cash and cash equivalents,
deposits and securities and on-trade loans.
101
200
90
262
4,866
893
2,700
2,236
13,382
24,378
4,825
886
2,797
-
8,163
17,023
Carlsberg A/S’ share capital is divided into two
classes (A shares and B shares). Combined with
the Carlsberg Foundation’s position as majority
shareholder (in terms of control), management
considers that this structure will remain
advantageous for all of the shareholders,
enabling and supporting the long-term
development of the Group.
The Group targets a leverage ratio below 2.0x.
At the end of 2023, the leverage ratio was 1.47x
(2022: 1.23x). The Group currently uses share
buy-back programmes to return excess cash to
shareholders.
The share buy-back programmes are initiated
based on a cautious evaluation of the Group’s
funding flexibility and credit resources available.
The size and duration of each programme
depend on the expected organic and inorganic
investments needed to grow the business and
the Group’s intention to maintain a leverage
ratio below 2.0x.
53
105
Net interest-bearing debt
269
5,445
282
5,577
DKK million
Non-current borrowings
Current borrowings
Gross financial debt
Deposits and securities
Cash and cash equivalents
Net financial debt
39,101
22,159
1,717
7,055
28,646
21,917
1,627
7,261
Loans to associates, interest-
bearing portion
On-trade loans, net
Other receivables, net
2023
30,763
8,338
2022
22,865
5,781
39,101
28,646
-2,236
-13,382
-
-8,163
23,483
20,483
-276
-460
-396
-275
-492
-390
Share capital
1 January 2022
Cancellation of
treasury shares
Class A shares
Class B shares
Total share capital
Shares of
DKK 20
Nominal
value,
DKK ’000
Shares of
DKK 20
Nominal
value,
DKK ’000
Shares of
DKK 20
33,699,252
673,985
111,557,554
2,231,151
145,256,806
-
-
-3,400,000
-68,000
-3,400,000
31 December 2022
33,699,252
673,985
108,157,554
2,163,151
141,856,806
Cancellation of
treasury shares
-
-
-4,500,000
-90,000
-4,500,000
31 December 2023
33,699,252
673,985
103,657,554
2,073,151
137,356,806
A shares carry 20 votes per DKK 20 share. B shares carry two votes per DKK 20 share. A preferential right to an 8%
non-cumulative dividend is attached to B shares. Apart from votes and dividends, all shares rank equally.
Nominal
value,
DKK ’000
2,905,136
-68,000
2,837,136
-90,000
2,747,136
Total financial liabilities
75,799
65,415
Net interest-bearing debt
22,351
19,326
Financial assets at fair value
Derivatives not designated as
hedging instruments
Derivatives designated as
hedging instruments
Financial assets at amortised
cost
Trade receivables
Trade loans
Other receivables
Deposits and securities
Cash and cash equivalents
Total financial assets
Financial liabilities at fair
value
Derivatives not designated as
hedging instruments
Derivatives designated as
hedging instruments
Contingent considerations
Borrowings and other
financial liabilities at
amortised cost
Non-current and current
borrowings
Trade payables
Deposit liabilities
Other payables
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
93
SHARE BUY-BACK AND TREASURY SHARES
On 7 February 2023, the Company announced
its intention to continue the share buy-back,
executed as quarterly programmes. In 2023, a
total of 3,338,514 B shares worth DKK 3.2bn
were repurchased. The 2023 programme ended
with the fourth quarterly programme, which
was finalised on 26 January 2024. Under this
programme, the Company has repurchased a
total of 3,160,923 B shares at a total purchase
price of DKK 3.0bn over a 12-month period.
According to the authorisation of the Annual
General Meeting, the Supervisory Board may,
in the period until 13 March 2027, allow the
Company to acquire treasury shares up to a
total holding of 10% of the nominal share
capital at a price quoted on Nasdaq
Copenhagen at the time of acquisition with a
deviation of up to 10%. The permitted holding
of treasury shares covers those acquired in
share buy-back programmes. The Company
holds no class A shares.
Transactions with shareholders
in Carlsberg A/S
DKK million
Dividends paid to
shareholders
Share buy-back
Total
2023
2022
-3,695
-3,200
-6,895
-3,389
-4,400
-7,789
Dividends paid to non-controlling interests
amounted to DKK 1,106m (2022: DKK 1,042m).
SECTION 4.4 (CONTINUED)
CAPITAL STRUCTURE
The Group generally intends to cancel treasury
shares that are not used for hedging of
incentive programmes.
The Group is rated by Moody’s Investors
Service and Fitch Ratings. Management
assesses the risk of changes in the Group’s
investment-grade rating as an element in
strategic decisions on capital structure.
Identification and monitoring of risks that could
change the rating were carried out on an
ongoing basis throughout the year.
4.4.2 SHARE CAPITAL
At the Annual General Meeting on 13 March
2023, it was decided to reduce the share capital
of Carlsberg A/S by a nominal amount of DKK
90,000,000 to a nominal amount of DKK
2,747,136,120 by cancelling 4,500,000 of the B
shares held by the Company, each with a
nominal value of DKK 20.
EQUITY1 (DKKbn)
The cancellation was completed on 11 April
2023. These shares had been repurchased as
part of the Company’s share buy-back
programmes.
At the Annual General Meeting on 11 March
2024, the Supervisory Board will recommend
that 3,100,000 treasury shares not used for the
hedging of the incentive programme be
cancelled.
4.4.3 EQUITY
DIVIDENDS
The Group proposes a dividend of DKK 27.00
per share (2022: DKK 27.00 per share),
amounting to DKK 3,709m (2022: DKK
3,830m). The proposed dividend has been
included in retained earnings at 31 December
2023.
Dividends to be paid out in 2024 for 2023, net
of dividends on treasury shares held at 31
December 2023, will amount to DKK 3,621m
(paid out in 2023 for 2022: DKK 3,708m).
At 31 December 2023, dividends to non-
controlling interests of DKK 43m were payable.
Treasury shares
1 January 2022
Acquisition of treasury shares
Cancellation of treasury shares
Used to settle share-based payments
31 December 2022
Acquisition of treasury shares
Cancellation of treasury shares
Used to settle share-based payments
31 December 2023
Fair value,
DKKm
3,800
4,169
Shares of
DKK 20
3,364,518
4,751,576
-3,400,000
-200,709
4,515,385
3,338,514
-4,500,000
-111,409
2,746
3,242,490
Nominal
value, DKKm
Percentage
of share
capital
67.3
95.0
-68.0
-4.0
90.3
66.8
-90.0
-2.3
64.8
2.3 %
3.3 %
-2.3 %
-0.1 %
3.2 %
2.5 %
-3.2 %
-0.1 %
2.4 %
1 Excluding the gross impact of the reclassification of cumulative currency translation and hedge losses related to the
discontinued operation that has no net impact on total equity.
34.78.0-6.2-3.1-0.10.2-4.8-3.20.225.7Equityat 1 JanuaryProfit from continuingoperationsLoss from discontinuedoperationsForeign exchange adjustmentsRetirement benefit obligationsHedgingDividends paidShare buy-backNon-controllinginterestsEquity at31 December
4.4.4 OTHER COMPREHENSIVE INCOME
Other comprehensive income has mainly been
impacted by the reclassification adjustments to
the income statement of accumulated currency
translation losses of DKK 40.9bn and hedge
losses of DKK 0.5bn following the
deconsolidation of the Russian operation in
July 2023. This was partly offset by negative
foreign exchange adjustments of DKK 3.1bn
from translation of Group entities with a
functional currency other than DKK.
SECTION 4.4 (CONTINUED)
CAPITAL STRUCTURE
ACCOUNTING
POLICIES
Proposed dividends
The proposed dividend is recognised as a liability at
the date when it is adopted at the Annual General
Meeting (declaration date).
Treasury shares
Cost of acquisition, consideration received and
treasury share dividends received are recognised
directly in equity as retained earnings. Capital
reductions from the cancellation of treasury shares
are deducted from the share capital at an amount
corresponding to the nominal value of the shares and
added to retained earnings.
Proceeds from the sale of treasury shares in
connection with the settlement of share-based
payments are recognised directly in equity.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
94
4.4.5 FINANCIAL RISK MANAGEMENT
The Group’s activities mean it is exposed to a
variety of financial risks, including market risk
(foreign exchange risk, interest rate risk and
commodity risk), credit risk and liquidity risk.
These risks are described in the following
sections:
• Foreign exchange risk: sections 1.3 and 4.7
• Interest rate risk: section 4.6
• Commodity risk: section 1.2.1
• Credit risk: sections 1.5.1 and 4.5.2
• Funding and liquidity risk: section 4.8
• Fair value and fair value adjustments of
derivatives used for hedging: sections 4.7.2
and 4.9
The Group’s financial risks are managed by
Group Treasury in accordance with the
Financial Risk Management Policy approved by
the Supervisory Board as an integrated part of
the overall risk management process. The risk
management governance structure is described
in the Management review (pages 48-50).
To reduce exposure to these risks, the Group
enters into a variety of financial instruments
and generally seeks to apply hedge accounting
to reduce volatility in the income statement.
Debt instruments and deposits in foreign
currency reduce the overall risk but will
generally not achieve the objective of reducing
volatility in specific items in the income
statement, unless they are designated as cash
flow hedges.
Other comprehensive income as recognised in the statement of changes in equity
DKK million
2023
Foreign exchange adjustments of foreign entities
Value adjustments of hedging instruments
Retirement benefit obligations
Income tax
Total
2022
Foreign exchange adjustments of foreign entities
Value adjustments of hedging instruments
Retirement benefit obligations
Income tax
Total
Currency
translation
38,025
212
-
13
38,250
-3,384
-395
-
88
-3,691
Hedging
reserves
Retained
earnings
-
698
-
-56
642
-
-344
-
15
-329
14
-
-64
-28
-78
4
-
589
-77
516
Non-
controlling
interests
Other
comprehen-
sive income
-258
37,781
10
-9
-1
920
-73
-72
Total
38,039
910
-64
-71
38,814
-258
38,556
-3,380
-739
589
26
-3,504
-546
-20
-3
1
-568
-3,926
-759
586
27
-4,072
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
95
SECTION 4.5
Changes in gross financial debt
BORROWINGS
AND CASH
4.5.1 BORROWINGS
Total borrowings increased by DKK 10.5bn.
Non-current borrowings increased by DKK
7.9bn, as a EUR 1.0bn EMTN bond that
matures in May 2024 was reclassified to short-
term and EUR 2.05bn of non-current EMTN
bonds were issued. Current borrowings
increased by DKK 2.6bn due to the repayment
of a EUR 500m EMTN bond in September, the
aforementioned reclassification of the EUR 1bn
bond and no issuance under the commercial
paper programme at year-end 2023.
Gross financial debt
DKK million
2023
2022
Non-current
Issued bonds
Bank borrowings
Lease liabilities
Other borrowings
Total
Current
Issued bonds
Bank borrowings
Lease liabilities
Commercial paper and
other borrowings
Total
Total borrowings
Fair value
29,270
136
1,335
22
21,470
70
1,203
122
30,763
22,865
7,448
323
466
101
8,338
39,101
38,449
3,714
271
390
1,406
5,781
28,646
26,694
An overview of issued bonds is provided in section 4.6.
DKK million
Gross financial debt at 1 January
Proceeds from issue of bonds
Instalments on and proceeds from borrowings, non-current
Instalments on lease liabilities
Commercial paper and other borrowings
External financing
Gross financial debt reclassified to liabilities in discontinued operations¹
Increase in lease liabilities¹
Debt acquired
Other, including foreign exchange adjustments and amortisation¹
Gross financial debt at 31 December
1 Non-cash item.
2023
28,646
15,272
-3,725
-466
-1,710
9,371
-
674
412
-2
2022
28,922
3,708
-5,583
-423
1,170
-1,128
-29
629
-
252
39,101
28,646
4.5.2 CASH AND DEPOSITS
Cash and cash equivalents include short-term
marketable securities with an original term of
less than three months that are subject to an
insignificant risk of changes in fair value and
form part of the short-term cash planning.
Short-term bank deposits amounted to DKK
6,896m at 31 December 2023 (2022: DKK
1,530m). Carlsberg has placed surplus liquidity
of DKK 2,236m from the issuance of bonds in
bank deposits that do not meet the definition of
cash and cash equivalents. These are classified
as deposits and are co-managed with cash and
cash equivalents. The average interest rate on
deposits was 4.5% (2022: 6.2%). Total cash
including deposits amounted to DKK 15,618m in
2023 (2022: DKK 8,163m).
ACCOUNTING
POLICIES
Borrowings
Borrowings are initially recognised at fair value less
transaction costs and subsequently measured at
amortised cost using the effective interest method.
Accordingly, the difference between the fair value less
transaction costs and the nominal value is recognised
under financial expenses over the term of the loan.
Lease liability
The lease liability is measured at the present value of
the remaining lease payments at the reporting date,
discounted using the incremental borrowing rate for
similar assets, taking into account the terms of the
leases. A remeasurement of the lease liability, for
example a change in the assessment of an option to
purchase, results in a corresponding adjustment of the
related right-of-use assets, cf. section 2.3.
Extension or termination options are included in the
lease term if the lease is reasonably certain to be
extended or not terminated. Consequently, all cash
outflows that are reasonably certain to impact the
future cash balances are recognised as lease liabilities
at initial recognition of lease contracts. The Group
reassesses the circumstances leading to it not
recognising extension or termination options on an
ongoing basis.
ASSESSMENT OF CREDIT RISK
The Group is exposed to credit risk on cash and
cash equivalents (including deposits), and
derivative financial instruments with a positive
fair value depending on the creditworthiness of
the counterparty.
The Group has established a credit policy under
which financial transactions may be entered
into only with financial institutions with a solid
credit rating, defined as BBB. Carlsberg only
enters into FX and aluminium derivatives with
relationship banks, and the associated credit
risk is mitigated to some extent by entering into
ISDA agreements, partly because it is the same
group of banks extending loans to the Group.
Carlsberg operates with individual limits on
banks, based on rating and other factors. For
some of the markets in which the Group
operates and holds cash, the financial
institutions do not have a BBB rating, in which
case an exemption is approved by Group
Treasury.
EXPOSURE TO CREDIT RISK
The carrying amount of DKK 15,618m (2022:
DKK 8,163m) represents the maximum credit
exposure related to cash and cash equivalents
and deposits. The credit risk on receivables is
described in section 1.5.1
Cash and deposits
DKK million
Cash and deposits
Derivative financial
instruments
Cash and deposits
Derivative financial
instruments
2023
2022
AA range
A range
BBB range
Not rated or below BBB range
Total
5,743
8,476
756
643
15,618
3
245
4
48
300
1,571
5,580
546
466
8,163
33
177
6
83
299
SECTION 4.6
INTEREST RATE RISK
Interest rate risk is monitored on net financial
debt, i.e. borrowings, cash and cash equivalents,
deposits and securities and derivative financial
instruments. The target is to have a duration
between three and eight years. At 31 December
2023, the duration was 5.7 years (2022: 4.1
years). Interest rate risk is mainly managed
using fixed-rate bonds, which are all
denominated in EUR. At the reporting date,
126% of the net financial debt consisted of
fixed-rate borrowings with interest rates fixed
for more than one year (2022: 106%). The
increase is due to the increase in both issued
bonds and cash and cash equivalents.
On a gross debt basis, 76% was at fixed interest
rates (2022: 76%). Significant parts of the
Group’s cash and cash equivalents are held in
currencies other than EUR, whereas EUR
accounts for the predominant part of the fixed-
rate borrowings. As a result, 124% of the
Group’s net debt is in EUR, which is why the
interest rate exposure primarily relates to
interest rate developments for EUR.
SENSITIVITY ANALYSIS
Total cash and cash equivalents including
deposits exceeds borrowings with a floating
interest rate, hence an increase in interest rates
would result in a decrease in net interest
expenses. It is estimated that a 1 percentage
point interest rate increase across currencies
would lead to a decrease in net interest
expenses of DKK 61m (2022: DKK 12m).
Interest rate risk
DKK million
2023
Issued bonds
Net financial debt by currency
DKK million
2023
EUR
CNY
USD
Other
Total
2022
EUR
CNY
USD
Other
Total
Gross
financial debt
Net
financial debt
37,282
146
214
1,459
39,101
27,040
94
345
1,167
28,646
29,166
-2,801
-273
-2,609
23,483
26,083
-3,560
-35
-2,005
20,483
Gross
financial debt,
fixed %
EUR 1,000m maturing 28 May 2024
EUR 500m maturing 13 October 2025
Net financial
debt, fixed %¹
EUR 750m maturing 26 November 2026
EUR 500m maturing 30 June 2027
79%
100%
EUR 700m maturing 5 October 2028
-
-
18%
76%
80%
-
30%
3%
76%
-
-
EUR 400m maturing 1 July 2029
EUR 500m maturing 11 March 2030
-10%
EUR 600m maturing 5 October 2033
126%
Total
Total 2022
83%
Bank borrowings and other borrowings
-
Floating-rate
-297%
Fixed-rate
-2 %
Total
106%
Total 2022
Fixed
29,291
-
-
261
29,552
21,530
-
104
37
21,671
¹ The percentage of net debt at fixed interest rates is above 100% in some currencies, as the total cash exceeds the
current debt. In some currencies the percentage of net debt at fixed interest rates is negative, as the total cash exceeds
the total debt.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
96
The sensitivity analysis is based on the financial
instruments (borrowing, cash and cash
equivalents, deposits and securities and
derivative financial instruments) recognised at
the reporting date.
The analysis was performed on the same basis
as for 2022.
All debts are carried at amortised cost and
changes in the interest rate will not impact the
carrying amount of debt but will impact the fair
value of debt, cf. section 4.5.1. The fair value of
total gross borrowings was DKK 652m lower
than the carrying amount (2022: DKK 1,952m
lower).
If all interest rates across tenor and currencies
had been 1 percentage point higher at the
reporting date, it would have led to a gain of
DKK 1,326m (2022: DKK 842m), and a similar
loss had the interest rate been 1 percentage
point lower.
Average
effective
interest
rate
Interest
rate
Fixed for
Carrying
amount
Interest
rate risk
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
< 1 year
1-2 years
2-3 years
3-4 years
4-5 years
> 5 years
> 5 years
> 5 years
2.6%
3.4%
3.6%
0.5%
4.2%
1.0%
0.7%
4.4 %
2.7%
1.7%
Floating
Fixed
4.1%
4.5%
< 1 year
> 1 year
7,448
3,718
5,578
3,711
5,179
2,959
3,708
Fair value
Fair value
Fair value
Fair value
Fair value
Fair value
Fair value
4,417
Fair value
36,718
25,184
2,102
281
2,383
3,462
Cash flow
Fair value
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
97
SECTION 4.7
FOREIGN EXCHANGE
RISK RELATED TO
NET INVESTMENTS
AND FINANCING
ACTIVITIES
4.7.1 CURRENCY PROFILE OF
BORROWINGS
The Group is exposed to foreign exchange risk
on borrowings denominated in a currency other
than the functional currency of the local entities
reporting the debt, as well as the risk that arises
when net cash inflow is generated in one
currency and borrowings are denominated and
have to be repaid in another currency.
4.7.2 HEDGING OF NET INVESTMENTS
IN FOREIGN SUBSIDIARIES
The Group holds a number of investments in
foreign subsidiaries where the translation of net
assets to DKK is exposed to foreign exchange
risks. The revaluation of the net investment is
recognised in other comprehensive income. The
Group hedges part of this foreign exchange
exposure by selling foreign currencies via FX
forwards and non-deliverable forwards (NDF),
and designates these as net investment hedges.
This mainly applies to net investments in CHF,
CNY, MYR and NOK. The basis for hedging is
reviewed at least once a year, and the two
parameters, risk reduction and cost, are
balanced. At the 2023 review it was decided to
increase the hedging of CNY and to temporarily
decrease the hedging of NOK.
In economic terms, having debt in foreign
currency or creating synthetic debt via forward
exchange contracts constitutes hedging of the
DKK value of future cash flows arising from
operating activities or specific transactions.
Where the notional amounts of forward
exchange contracts do not exceed the net
investment, the fair value adjustments are
recognised in other comprehensive income.
Two of the most significant net risks relate to
foreign exchange adjustment of net
investments in CNY and CHF, both of which are
partly hedged.
All the forward exchange contracts mature
during 2024. At 31 December 2023, all
adjustments of financial instruments have been
recognised in other comprehensive income. Fair
value adjustments of loans designated as
strategic intra-group loans have also been
recognised in other comprehensive income.
The fair value of derivatives used as net
investment hedges recognised at 31 December
2023 amounted to DKK -13m (2022: DKK 38m).
The closing balance in the equity reserve for
currency translation of hedges of net
investments for which hedge accounting no
longer applies amounted to DKK -1,962m
(2022: DKK -2,282m) on a pre-tax basis.
Positive fair values of derivatives are recognised
as other receivables and negative values as
other liabilities. During 2023 losses of DKK 24m
regarding hedges of the net investment in RUB
were reclassified from equity to the income
statement and included in the loss from
discontinued operations.
Net investment hedges
Currency profile of borrowings
Before and after derivative financial instruments
DKK million
DKK million
2023
CHF
NOK
EUR
USD
CNY
Other
Total
Total 2022
Original
principal
Effect
of swap
285
163
37,282
214
146
1,011
39,101
28,646
1,219
383
-9,014
2,827
4,170
415
-
-
CNY
MYR
HKD
CHF
NOK
SEK
GBP
SGD
CAD
Reclassified to the
income statement
After
swap
1,504
546
28,268
3,041
4,316
1,426
39,101
28,646
Total
2023
2022
Hedging of invest-
ment, amount in
local currency
Intra-group loans,
amount in local
currency
Other comprehensive
income (DKK)
Average hedged rate
Fair value of
derivatives
Fair value of
derivatives
2023
-4,707
-128
-
-294
-450
-
-
-
-
-
2022
-3,907
-128
-
-310
-1,300
-
-
-
-
-
2023
2022
2023
2022
-
-
-
-
-3,609
-2,128
-
3,000
2,245
44
72
104
-
-
3,000
2,217
-19
37
-
-
253
16
84
-100
-53
7
-11
-2
-6
24
212
-12
-21
-49
-109
-94
-136
6
20
-
-
-395
2023
0.9713
1.5616
-
7.8708
0.6300
-
-
-
-
-
2022
1.0355
1.5560
-
7.4334
0.7179
-
-
-
-
-
Asset
Liability
Asset
Liability
71
12
-
-
-
-
-
-
-
-
-5
-
-
-79
-12
-
-
-
-
-
83
-
-
-
16
-
-
-
-
-
-
-3
-
-58
-
-
-
-
-
-
83
-96
99
-61
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
98
IMPACT ON STATEMENT
OF FINANCIAL POSITION
Fluctuations in foreign exchange rates will
affect the level of debt, as funding is obtained
and cash held in a number of currencies. In
2023, net interest-bearing debt increased by
DKK 614m (2022: DKK 431m) because of
changes in foreign exchange rates.
SENSITIVITY ANALYSIS
An adverse development in the exchange rates
would, all other things being equal, have had
the hypothetical impact on other
comprehensive income (OCI) for 2023 as
illustrated in the table. The calculation is based
on hedges existing as at 31 December 2023.
Other comprehensive income
Other comprehensive income is affected by
changes in the fair value of currency derivatives
designated as cash flow hedges of future
purchases.
APPLIED EXCHANGE RATES
The average exchange rate was calculated
using the monthly exchange rates weighted
according to the phasing of the revenue per
currency throughout the year.
Exchange rate sensitivity - other comprehensive income
2023
DKK million
NOK/DKK
SEK/DKK
PLN/DKK
CHF/DKK
USD/DKK
RUB/DKK
UAH/DKK
Other
Total
Average
hedged rate
Notional
amount
0.6412
0.6453
1.5994
7.8496
6.7677
-
0.1875
N/A
-722
-807
-710
-628
-162
-
-273
-
Change
5%
5%
5%
5%
10%
-
20%
5-30%
Effect
on OCI
Average
hedged rate
-36
-40
-36
-31
-16
-
-55
-28
-242
0.7208
0.6869
1.4694
7.5080
7.5926
0.1071
0.2212
N/A
2022
Effect
on OCI
-49
-42
-35
-26
38
-116
-62
-53
-345
Applied exchange rates
DKK
Swiss franc (CHF)
Chinese yuan (CNY)
Euro (EUR)
Pound sterling (GBP)
Indian rupee (INR)
Laotian kip (LAK)
Norwegian krone (NOK)
Polish zloty (PLN)
Ukrainian hryvnia (UAH)
Swedish krona (SEK)
Closing rate
Average rate
2023
8.0485
0.9493
7.4529
8.5759
0.0812
0.0003
0.6630
1.7175
0.1766
0.6717
2022
7.5520
1.0106
7.4365
8.3845
0.0840
0.0004
0.7073
1.5887
0.1909
0.6686
2023
7.6744
0.9752
7.4510
8.5829
0.0834
0.0004
0.6510
1.6467
0.1882
0.6491
2022
7.4190
1.0569
7.4397
8.7235
0.0903
0.0005
0.7374
1.5859
0.2223
0.7002
SECTION 4.7 (CONTINUED)
FOREIGN EXCHANGE
RISK RELATED TO
NET INVESTMENTS
AND FINANCING
ACTIVITIES
4.7.3 EXCHANGE RATE RISK ON CASH
AND BORROWINGS
The main principle for funding subsidiaries is
that cash and borrowings should be
denominated in local currency or hedged to
local currency to avoid foreign exchange risk.
However, in some Group entities, cash and
borrowings are denominated in a currency
other than the functional currency of the local
entity without the foreign exchange risk being
hedged. This applies primarily to a few entities
in Central & Eastern Europe that hold cash and
loans in EUR and USD and in this way obtain
either hedge accounting or proxy hedging of
the foreign exchange risk associated with the
purchase of goods in foreign currency in these
markets.
4.7.4 IMPACT ON FINANCIAL
STATEMENTS AND SENSITIVITY
ANALYSIS
IMPACT ON INCOME STATEMENT
For the impact of currency on operating profit
and financial items, please refer to sections 1.3
and 4.1 respectively.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
99
Committed credit facilities and credit resources available
DKK million
SECTION 4.8
FUNDING AND
LIQUIDITY RISK
Liquidity risk results from the Group’s potential
inability to meet the obligations associated with
its financial liabilities, for example settlement of
financial debt and payment of suppliers.
2023
Current
< 1 year
Total current committed loans and credit
facilities
Non-current
1-2 years
2-3 years
3-4 years
4-5 years
> 5 years
Total non-current committed loans and credit
facilities
Cash and cash equivalents and deposits
Current portion of utilised credit facilities
Credit resources available (total non-current
committed loans and credit facilities less net
debt)
The Group’s overall objective is to ensure
continuous access, at the right price, to the
financial resources needed for operations and
growth.
The aim is to ensure effective liquidity
management, which involves obtaining
sufficient committed credit facilities to ensure
adequate financial resources and, to some
extent, tapping a range of funding sources.
DIVERSIFIED FUNDING SOURCES
The Group is diversifying its access to funding
to avoid relying on one single source of
funding.
The Group has access to a committed EUR 2bn
revolving credit facility (RCF) maturing in 2026,
which is currently not being utilised. In addition,
the Group has committed cash pool bank
overdraft facilities to cover the day-to-day
liquidity needs and uncommitted access to the
Euro Commercial Paper (ECP) market, which
provides short-term funding.
At 31 December 2023, bonds accounted for
94% of the gross funding.
Total
committed
loans and
credit
facilities
Utilised
portion of
credit
facilities
Unutilised
credit
facilities
2022
Unutilised
credit
facilities
9,487
9,487
4,210
20,664
3,838
5,261
11,702
8,338
8,338
4,210
5,752
3,838
5,261
11,702
45,675
30,763
-
-
1,149
1,149
-
14,912
-
-
-
14,912
15,618
-8,338
1,149
1,149
-
-
14,877
-
-
14,877
8,163
-5,781
22,192
17,259
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
100
SECTION 4.8 (CONTINUED)
FUNDING AND
LIQUIDITY RISK
DKK 14,912m less utilisation of current facilities
of DKK 8,338m. Including current credit
facilities of DKK 1,149m, total committed
unutilised credit facilities amounted to DKK
16,061m.
CREDIT RESOURCES AVAILABLE
The Group uses the term “credit resources
available” to determine the adequacy of access
to credit facilities.
Credit resources available at year-end 2023
were DKK 5bn higher than at year-end 2022, as
a result of the ongoing funding activities.
Credit resources available include cash, deposits
and unutilised credit facilities with more than 12
months to maturity less utilised credit facilities
with less than 12 months to maturity and
uncommitted working capital facilities.
Net financial debt is used internally to monitor
the Group’s credit resources available. Net
financial debt is the Group’s net interest-bearing
debt, excluding interest-bearing assets other
than cash and deposits, as these assets are not
actively managed in relation to liquidity risk.
Net financial debt is shown in section 4.3.
At 31 December 2023, the Group had total
credit resources available of DKK 22,192m,
consisting of cash and cash equivalents and
deposits of DKK 15,618m plus committed
unutilised non-current credit facilities of
Time to maturity for non-current borrowings
The credit resources available and access to
unused committed credit facilities are
considered reasonable in light of the Group’s
current needs in terms of financial flexibility.
The Group uses cash pools for day-to-day
liquidity management in most of its entities in
Western Europe, as well as intra-group loans to
and from subsidiaries. Central & Eastern Europe
and Asia are less integrated in terms of cash
pools, and liquidity is managed via intra-group
loans. For some markets in Asia, intra-group
loans are not possible, and surplus liquidity will
be paid out in the form of dividends, which
results in a time lag between when the cash
flow is generated and when it becomes
available for repayment of Group debts. The
most significant cash balances related to this
delay are in China. Cash balances held in
Ukraine of DKK 922m are temporarily
unavailable for Group purposes due to the
ongoing war.
MATURITY OF FINANCIAL LIABILITIES
The table lists the contractual maturities of
financial liabilities, including estimated interest
payments and excluding the impact of netting
agreements, and thus summarises the gross
liquidity risk.
The risk implied by the values reflects the one-
sided scenario of cash outflows only. Trade
payables and other financial liabilities originate
from the financing of assets in ongoing
operations, such as property, plant and
equipment, and investments in working capital,
for example inventories and trade receivables.
The nominal amount/contractual cash flow of
gross financial debt totalled DKK 39,278m in
2023 (2022: DKK 28,757m), whereas the total
carrying amount was DKK 39,101m (2022:
DKK 28,646m). The difference between these
amounts arises at initial recognition and is
treated as a cost that is capitalised and
amortised over the duration of the borrowings.
The interest expense is the contractual cash
flows expected on the gross financial debt
existing at 31 December 2023.
The cash flow is estimated based on the
notional amount of the above-mentioned
borrowings and expected interest rates at year-
end 2023 and 2022. Interest on debt recognised
at year-end 2023 and 2022 for which no
contractual obligation exists (current borrowing
and other debts) has been included for a two-
year period. The synthetic interest on lease
liabilities has also been included for a two-year
period. The interest applied to the part of the
debt where no contractual obligation exists is
4.0% for 2024 and 2.5% for 2025 (2022: 2.8%).
The increase is due to the increase in interest
rates seen for most currencies during 2023.
Maturity of financial liabilities
DKK million
2023
Contractual
cash flows
Maturity
< 1 year
Maturity
> 1 year
< 5 years
Maturity
> 5 years
Carrying
amount
Derivative financial instruments
Derivative financial instruments, payables
295
295
-
-
322
DKK million
2023
Issued bonds
Bank borrowings
Lease liabilities
Other non-current borrowings
Total
Total 2022
1-2 years
2-3 years
3-4 years
4-5 years
> 5 years
3,718
5,578
67
423
2
4,210
7,904
40
134
0
5,752
3,823
3,711
24
102
1
3,838
105
5,179
11,084
5
75
2
5,261
3,775
0
601
17
11,702
7,258
Total
29,270
136
1,335
22
30,763
22,865
Non-derivative financial instruments
Gross financial debt
Interest expenses
Trade payables and other liabilities
Contingent liabilities
Contingent considerations
Non-derivative financial instruments
Financial liabilities
Total 2022
39,278
4,193
23,876
201
5,445
72,993
73,288
59,884
8,346
954
23,876
201
5,141
38,518
38,813
36,082
19,135
2,280
-
-
304
21,719
21,719
16,406
11,797
959
-
-
-
12,756
12,756
7,396
39,101
N/A
23,876
N/A
5,445
-
-
-
SECTION 4.9
DERIVATIVE
FINANCIAL
INSTRUMENTS
The Group enters into derivative financial
instruments to hedge foreign exchange and
commodity risks, cf. sections 1.2 and 1.3, and
seeks to apply hedge accounting when this is
possible. Hedging of future, highly probable
forecast transactions is designated as cash flow
hedges.
Total net gain on active cash flow hedges
recognised in OCI was DKK 123m with gains on
aluminium and losses on exchange rate
instruments and energy. The energy hedge is a
power purchase agreement which secures fixed
price electricity for 10 years commencing 2024.
Positive fair values of derivatives are recognised
as other receivables and negative values as
other liabilities.
The impact on other comprehensive income
and the fair value of derivatives classified as
cash flow hedges is presented in the cash flow
hedge table.
Following the deconsolidation of the Russian
operation, the value of hedges relating to the
original acquisition of the Russian operation
and the value of aluminium and FX hedges in
the Russian operation have been reclassified
from equity to the income statement and
included in the loss from discontinued
operations at the time of deconsolidation. The
total amount of the reclassification was DKK
545m. Additional losses of DKK 40m regarding
hedges of financial investment were
Cash flow hedges
DKK million
2023
Exchange rate
instruments
Aluminium
Energy
Reclassification
from OCI
Total
2022
Exchange rate
instruments
Aluminium
Energy
Total
Other
comprehen-
sive income
Fair value,
receivables
Fair value,
payables
Fair value,
net
-73
231
-35
585
708
Other
comprehen-
sive income
-8
-439
83
-364
7
62
48
-
117
-116
-57
-
-
-173
-109
5
48
-
-56
Fair value,
receivables
Fair value,
payables
Fair value,
net
62
18
83
163
-19
-202
-
-221
43
-184
83
-58
Expected recognition
2024
-109
-10
2
-
-117
2023
43
-183
-
-140
2025
and later
-
15
46
-
61
2024
and later
-
-1
83
82
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
101
reclassified from the cash flow hedge reserve:
DKK 22m to the income statement and DKK
18m to intangible assets. At 31 December 2023,
hedging reserves included DKK -215m in
relation to cash flow hedges for which hedge
accounting is no longer applied.
Fair value adjustments of derivative financial
instruments that are not designated as either
net investment hedges or cash flow hedges are
recognised in financial income and expenses.
The fair value adjustment of derivatives which
have become ineffective is recognised in the
income statement. In 2023 the ineffective
portion amounted to DKK -9m and relates to
exchange rate instruments and aluminium.
ACCOUNTING ESTIMATES
AND JUDGEMENTS
When entering into financial instruments,
management assesses whether the instrument is an
effective hedge of expected future cash flows or
financial investments. The effectiveness of recognised
hedging instruments is assessed at least twice a year.
Fair values of derivative financial instruments are
calculated on the basis of level 2 input consisting of
current market data and generally accepted valuation
methods. Internally calculated values are used, and
these are compared with external market quotes on a
quarterly basis. For currency, aluminium and
electricity derivatives, the calculation is as follows:
a) The forward market rate is compared to the agreed
rate on the derivatives, and the difference in cash
flow at the future point in time is calculated.
b) The amount is discounted to present value. Where
relevant the discounting rate includes a credit risk
adjustment.
When entering into a contract, management assesses
whether the contract contains embedded derivatives
and whether they meet the criteria for separate
classification and recognition. The Group currently
does not have any embedded derivatives that meet
the criteria for separate classification and recognition.
Financial derivatives not designated as hedging instruments (economic hedges)
DKK million
2023
Exchange rate instruments
Ineffectiveness
Total
2022
Exchange rate instruments
Ineffectiveness
Total
Income
statement
Fair value,
receivables
Fair value,
payables
Fair value, net
69
-9
60
-105
-16
-121
101
-
101
90
-
90
-53
-
-53
-105
-
-105
48
-
48
-15
-
-15
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
102
Derivatives designated as and qualifying for
recognition as a cash flow hedge of financial
investments are recognised in other comprehensive
income. On complete or partial disposal of the
financial investment, the portion of the hedging
instrument that is recognised in other comprehensive
income and relates to that financial investment is
recognised in the income statement when the gain or
loss on disposal is recognised.
Hedges of net investments in foreign subsidiaries and
associates are accounted for in the same way as cash
flow hedges. Notional amounts, average hedge rates
and the fair values and disclosed in section 4.7.2.
SECTION 4.9 (CONTINUED)
DERIVATIVE
FINANCIAL
INSTRUMENTS
ACCOUNTING
POLICIES
Derivative financial instruments are initially
recognised at fair value on the trade date and
subsequently remeasured at fair value at the
reporting date.
The accounting for subsequent changes in fair value
depends on whether the derivative is designated as
one of:
• Cash flow hedges of particular risks associated with
the cash flow from forecast transactions
• Net investment hedges of currency fluctuations in
subsidiaries or associates.
The fair values of derivative financial instruments are
presented in other receivables or payables, and
positive and negative values are offset only when the
Group has the right and the intention to settle several
financial instruments net.
Changes in the fair value of derivative financial
instruments not designated in a hedge relationship
are recognised in financial income or expenses in the
income statement.
Changes in the effective portion of the fair value of
derivative financial instruments that are designated
and qualify as a cash flow hedge are recognised in
the hedging reserve within equity. When the hedged
transaction materialises, amounts previously
recognised in other comprehensive income are
transferred to the same item as the hedged item.
SECTION 5
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
103
DISCONTINUED OPERATIONS, ACQUISITIONS,
DISPOSALS AND ASSOCIATES
Deconsoli-
dation of
the Russian
operation
Deconsolidation of the operation in Russia
following the presidential decree issued on 16
July 2023 temporarily transferring
management of the business to a government
agency.
Waterloo
Brewing
Acquired Waterloo Brewing and expanded the
production network needed for our business in
Canada.
SECTION 5.1
DISCONTINUED
OPERATIONS
On 16 July 2023, the Russian Government
issued a presidential decree, temporarily
transferring the management of the Group’s
Russian subsidiary Baltika Breweries to the
Russian Federal Agency for State Property
Management. According to the presidential
decree, Carlsberg retains title to the shares in
Baltika Breweries, but otherwise no longer has
any control or influence over the management
of the business.
The decree was issued shortly after the Group
announced it had signed an agreement for the
conditional sale of Baltika Breweries. The sales
agreement was subsequently terminated.
In June 2023, following the signing of the sales
agreement and prior to the issuance of the
presidential decree, the Russian operation was
revalued at fair value less expected cost to sell,
resulting in recognition of impairment losses of
DKK 1,686m.
Following the loss of control over Baltika
Breweries, the Russian business was
deconsolidated from July 2023. The business
had been accounted for as held for sale and
presented as discontinued operations since
March 2022. Upon deconsolidation, the
currency translation and hedging reserves
within equity related to the Russian business
were reclassified from equity to the income
statement and included in the loss from
discontinued operations.
The accumulated currency translation reserve
reclassified to the income statement
represented a loss of DKK 40.9bn, around half
of which was recognised in December 2014
when the RUB depreciated significantly
following the Russian invasion and annexation
of Crimea. This figure included the accumulated
fair value of net investment hedges of DKK
24m, cf. section 4.7.
The accumulated hedging reserve reclassified to
the income statement represented a loss of
around DKK 0.5bn and included both active
hedges and hedges for which hedge accounting
was no longer applied, cf. section 4.9.
In addition, following the issuance of the
decree, the interest retained in Baltika
Breweries no longer met the accounting
definition of an equity investment and was
reclassified as consideration receivable from the
Russian Federation for its illegitimate takeover
of the Group’s business in Russia. Following
reclassification as a receivable, it was written
down in full and derecognised, bringing
impairment losses recognised in the year to
DKK 7,002m (2022: DKK 9,949m).
As a consequence of the Group being prevented
from disposing of its Russian business on
acceptable terms, all licence agreements
enabling Baltika Breweries to produce, market
and sell the Carlsberg Group’s products,
including international and regional brands,
were terminated in September 2023. There will
be a limited run-off period until 1 April 2024,
during which Baltika Breweries may use up
existing stock and materials.
The issuance of the presidential decree
extinguished the Group’s obligation to repay a
loan provided by Baltika Breweries. This
resulted in a gain of DKK 297m. The Group’s
trade receivables of DKK 76m for providing
goods and services to the Russian business
were considered to be unrecoverable and have
therefore been fully impaired. These amounts
have been recognised in special items, cf.
section 3.1.
SECTION 5.1 (CONTINUED)
DISCONTINUED
OPERATIONS
Financial performance
The loss from discontinued operations for 2023
only includes the six months of operation until
the time of loss of control. Reported revenue in
Russia amounted to DKK 4,305m (2022: DKK
10,207m) and profit to DKK 758m (2022: DKK
1,874m). The net result was DKK -47,748m
(2022: DKK -8,075m), impacted by the
reclassification from equity of accumulated
losses on currency translation and hedges of
DKK 41,504m and the write-down of the
investment by DKK 7,002m (2022: DKK
9,949m).
The cash flow from investing activities in the
discontinued operations amounted to DKK
-2,588m (2022: DKK -376m), of which DKK
-2,495m was the impact from deconsolidating
cash and cash equivalents in the Russian
operation.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
104
Analysis of loss from the discontinued operation in Russia
DKK million
Revenue
Costs
Profit before tax from discontinued operations
Income tax
Profit after tax from discontinued operations
Impairment losses
Accumulated currency translation and hedging reserves reclassified from equity to the
income statement
Loss from discontinued operations
Major classes of assets and liabilities in the discontinued operation in Russia
DKK million
Intangible assets
Property, plant and equipment
Inventories
Receivables
Cash and cash equivalents
Assets in discontinued operations
Borrowings
Tax liabilities, retirement benefit obligations etc.
Trade payables
Other liabilities
Liabilities in discontinued operations
Net assets in discontinued operations
Net cash flow from the discontinued operation in Russia
DKK million
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Net cash flow from discontinued operations
2023
4,305
-3,337
968
-210
758
2022
10,207
-8,228
1,979
-105
1,874
-7,002
-9,949
-41,504
-47,748
-
-8,075
2023
-
-
-
-
-
-
-
-
-
-
-
-
2023
1,531
-2,588
63
-994
2022
5,483
2,989
1,015
937
1,194
11,618
101
1,144
1,892
963
4,100
7,518
2022
1,952
-376
195
1,771
ACCOUNTING ESTIMATES
AND JUDGEMENTS
The Group classifies non-current assets and disposal
groups as held for sale when management assesses
that their carrying amounts will be recovered through
a sale rather than continued use. Management’s
assessment is based on an evaluation of whether the
sale is highly probable and the asset or disposal group
is available for immediate sale in its current condition.
Actions required to complete the sale should indicate
that it is unlikely that significant changes to the sale
will be made or that the decision to sell will be
withdrawn. Management must be committed to the
plan to sell the asset and the sale must be expected
to be completed within one year from the date of the
classification.
On classification, management estimates the fair
value. Non-current assets and disposal groups
classified as held for sale are measured at the lower
of their carrying amount and fair value less costs of
disposal. Costs of disposal are the incremental costs
directly attributable to the disposal of an asset
(disposal group), excluding finance costs and income
tax expense.
Depending on the nature of the non-current assets
and the disposal group’s activity, assets and liabilities,
the estimated fair value may be associated with
uncertainty and possibly adjusted subsequently.
Measurement of the fair value of disposal groups is
categorised as level 3 in the fair value hierarchy, as
measurement is not based on observable market
data.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
105
Discontinued operations are excluded from the results
of continuing operations and presented separately as
profit/loss from discontinued operations in the income
statement. Comparative figures are restated.
Cash flow from discontinued operation is presented
separately as net cash flow from discontinued
operation in the statement of cash flows and specified
in this section. Comparative figures are restated.
The disposal group/assets and liabilities classified as
held for sale are presented separately as current
items in the statement of financial position.
Comparative figures are not restated.
SECTION 5.1 (CONTINUED)
DISCONTINUED
OPERATIONS
ACCOUNTING
POLICIES
Assets held for sale comprise non-current assets and
disposal groups held for sale. Liabilities held for sale
are those directly associated with the assets that will
be transferred in the transaction. After derecognition,
the classification is changed to assets and liabilities in
discontinued operations respectively. Immediately
before classification as held for sale, the assets or
disposal groups are remeasured in accordance with
the Group’s accounting policies. Thereafter, they are
measured at the lower of their carrying amount and
fair value less costs to sell. Any impairment loss is
allocated first to goodwill, and then to remaining
assets on a pro rata basis, except that no loss is
allocated to inventories, financial assets, deferred tax
assets or employee benefit assets, which continue to
be measured in accordance with the Group’s
accounting policies. Property, plant and equipment
and intangible assets are not depreciated or
amortised once classified as held for sale.
Impairment losses on initial classification as held for
sale, and subsequent gains and losses on
remeasurement are recognised in the income
statement.
Non-current assets and disposal groups held for sale
are presented separately as current lines in the
statement of financial position and the main elements
are specified in this section. Comparative figures are
not restated.
A disposal group is presented as discontinued
operations if it is a group of companies, i.e. part of a
geographical area of operations that has either been
disposed of or is classified as held for sale.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
106
SECTION 5.2
INVESTMENT MODEL
AND RISKS
MARKET ACCESS
In the beer industry, access to local markets is
highly dependent on establishing good
relationships with customers in the on- and off-
trade channels, national distributors, local
suppliers and relevant authorities governing the
beverage industry. One way of establishing
such relations is by acquiring a local brewer or
engaging with a local partner that already has
the relevant relationships.
When the Group expands its business to new
geographies, it often does so in collaboration
with a local partner. Such a partnership can
take different legal forms and impacts the
consolidated financial statements accordingly.
In addition to its activities in the beer industry,
the Group operates in the soft drinks industry,
an industry dominated by large global brand
owners. The Group is engaged in long-term
contractual partnerships to produce, distribute
and sell third-party soft drink brands. In
addition to granting the right to produce, the
brand owner usually provides the recipe and/or
raw material, while the Group has the
necessary production capabilities and
distribution platform.
risks, depend on the ability of the Group and
the local partner to forge a strong and aligned
cooperation.
In some markets, the Group enters as a non-
controlling shareholder, providing a degree of
financing and contributing knowledge of the
beer industry. The Group thus leaves control
with the partner and recognises the investment
as an associate.
More often, the Group structures its
partnerships such that it exercises management
control, usually by way of majority of the
voting rights. These investments are fully
consolidated subsidiaries, which are just as
important as other types of partnership for
success in the local markets, but mean that the
Group has increased financial exposure.
Investments in businesses in which the Group
exercises management control often involve put
and/or call options to acquire additional shares.
IMPACT ON FINANCIAL STATEMENTS
Investments in associates are consolidated in
the financial statements using the equity
method. The accounting risks associated with
these entities are limited to the investment
made, the proportionate share of the net profit
and any specific additional commitments to
banks or other parties, as well as specific
guarantees or loans the Group provides to the
partnership.
INVESTMENT MODEL
Entering into a partnership can reduce the
financial exposure and mitigate the business
risks associated with entering new markets or
expanding the activities in an existing market.
The financial exposure, however, varies
depending on the structure of the partnership.
Business and financial success, and the related
In businesses where the Group exercises
management control, the consolidated
financials are impacted by full exposure to the
earnings and other financial risks. From an
accounting point of view, the Group treats any
put options held by partners in such entities as
if they had already been exercised by the
partner, i.e. anticipating that the acquisition will
occur. The accounting impact is that the non-
controlling interests are not recognised, and no
part of net profits or equity is attributed to
them. Instead, the dividends paid to the
partner are reported as financial expenses.
Common to all partnerships is the risk of
disagreement and ultimately dissolution.
Disagreements with partners on the operational
management and strategic direction of
partnerships may limit our ability to manage
the growth and risk profile of our business. The
Group continuously seeks to promote a fair and
mutually beneficial development of the
partnerships, which is crucial to be successful.
However, in certain partnerships the partners’
pursuit of goals and priorities that are different
from those of the Group might result in
disagreements, affecting operational and
financial performance. Different goals and
priorities of this kind can become more
pronounced in the period when a partner has
the right to exit the partnership.
A dissolution will initially impact the accounting
treatment of an investment. The accounting
treatment will depend on whether the Group or
its partner is exiting the business. In the long
term the impact on the operation of the local
entity and the collaboration with customers,
distributors, authorities etc. can be significant if
the partner was instrumental in managing
these relationships. The risk of a partnership
dissolution may therefore have a negative
impact on the underlying business and the
financial performance recognised in the
consolidated financial statements.
The Group is involved in many partnerships,
one being Carlsberg South Asia Pte Ltd
(CSAPL), of which Carlsberg owns two thirds
and CSAPL Holdings Pte Ltd (CSAPLH) the
remaining one third. CSAPL is the holding
company for the businesses in India (100%) and
Nepal (90%). In 2022, the Group invoked its
right to begin the call process, and the partner
exercised its put option under the Shareholders’
Agreement. A put option valuation certificate
was issued in February 2023, cf. section 5.4. For
the purpose of the consolidated financial
statements, the put option is accounted for as if
it had already been exercised. CSAPL and its
investments in India and Nepal are therefore
included in the consolidated financial
statements, with no profits or equity attributed
to the non-controlling shareholder. Please refer
to section 3.4 for a detailed description of the
dispute with the partner in CSAPL.
Partnerships in the soft drinks industry are
based on long-term contractual agreements
and come to an end when the contract
terminates. The termination of a significant
partnership with a global soft drink brand
owner would have a negative impact on the
Group’s financial performance.
The issuance of the presidential decree in
Russia, temporarily transferring the
management of the Group’s subsidiary Baltika
Breweries to the Russian Federal Agency for
State Property Management, effectively
prevents the Group from acting as shareholder
in Baltika Breweries. In an attempt to prevent
the Group from exercising its rights as the
lawful owner of certain assets and intellectual
property rights of which Baltika Breweries
previously enjoyed the benefit or possessed as
part of the Carlsberg Group, various claims
have been filed in Russia against the Group by
Baltika Breweries. The claims are considered to
be baseless and without merit. The Group
continues to defend, uphold and protect its
assets, legal and intellectual property rights.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
107
SECTION 5.3
ACQUISITIONS
AND DISPOSALS
ACQUISITION OF ENTITIES IN 2023
The Group gained control of two businesses
during the year. The purchase price allocation
of the fair value of the identified assets,
liabilities and contingent liabilities for both
businesses was completed in 2023.
Waterloo Brewing
On 7 March 2023, the Group acquired 100% of
the Canadian Waterloo Brewing company for a
cash consideration of CAD 144m (DKK 734m).
The company was fully consolidated as of the
acquisition date.
The purpose of the acquisition was to
strengthen the Group’s market position and to
deliver supply chain and other synergies. The
calculated goodwill represents staff
competences and synergies from expected
optimisations of sales and distribution, supply
chain and procurement, possible product
innovations, increase in market share and
access to new customers.
Jing-A Group
In September 2023, Carlsberg gained control of
Jing-A Group through the acquisition of an
additional 26.5% of the shares, giving Carlsberg
a 75.5% ownership interest, cf. section 5.5. The
non-controlling interest holds an option to sell
its remaining shareholding to Carlsberg and, in
accordance with the Group’s accounting
policies, the non-controlling interest has not
been recognised. Instead the contingent
consideration payable has been recognised at
fair value, cf. section 5.4.
The step acquisition of Jing-A Group was
completed to further strengthen the Group’s
presence in the growing craft beer segment in
China. The shareholdings held before obtaining
control were remeasured at a fair value of DKK
47m with the revaluation adjustment, DKK
20m, recognised in special items.
ACQUISITION OF ENTITIES IN 2022
The Group did not complete any acquisitions of
entities in 2022.
CASH FLOW
Cash flow to acquire or dispose of
shareholdings in associates and when gaining
control of subsidiaries is included in financial
investments, while the cash flow on acquisition
of an additional shareholding in a subsidiary,
i.e. acquiring non-controlling interests, is
presented in financing activities. In 2022, the
Group made a capital injection of DKK 48m in
an associate.
ACCOUNTING ESTIMATES
AND JUDGEMENTS
Assessment of control
The classification of entities where Carlsberg controls
less than 100% of the voting rights is based on an
assessment of the contractual and operational
relationship between the parties. This includes
assessing the conditions in shareholder agreements,
contracts etc.
Consideration is also given to the extent to which
each party can govern the financial and operating
policies of the entity, how the operation of the entity
is designed, and which party possesses the relevant
knowledge and competences to operate the entity.
Another factor relevant to this assessment is the
extent to which each of the parties can direct the
activities and affect the returns, for example by
means of rights, reserved matters or casting votes.
Acquisitions
DKK million
Consideration paid
Fair value of contingent consideration
Fair value of previously held investment
Total cost of acquisition
Acquired assets and liabilities
Intangible assets
Property, plant and equipment
Right-of-use assets
Inventories
Trade and other receivables
Cash and cash equivalents
Borrowings and lease liabilities
Deferred tax liabilities
Trade payables
Other payables
Acquired assets and liabilities
Elements of cash consideration paid and
received
DKK million
Consideration paid for
acquisition of entities
Consideration received for
disposal of entities
Cash and cash equivalents and
bank overdrafts acquired/
disposed of
Acquisition and disposal of
entities, net
Consideration paid for
acquisition of associates
Consideration paid for increase
of investment in associates
Acquisition and disposal of
associates, net
Cash flow from acquisition of
shareholdings, total
2023
2022
-760
4
-66
-822
-7
-
-7
-829
-
-
-
-
-
-48
-48
-48
2023
760
24
47
831
807
270
161
91
109
5
-417
-43
-104
-48
831
Purchase price allocation procedures
For acquisitions of entities, the assets, liabilities and
contingent liabilities of the acquiree are recognised
using the acquisition method. The most significant
assets acquired generally comprise goodwill, brands,
property, plant and equipment, receivables and
inventories.
No active market exists for the majority of the
acquired assets and liabilities, in particular in respect
of acquired intangible assets. Accordingly,
management makes estimates of the fair value of
acquired assets, liabilities and contingent liabilities.
Depending on the nature of the item, the determined
fair value of an item may be associated with
uncertainty and possibly adjusted subsequently.
The unallocated purchase price (positive amount) is
recognised in the statement of financial position as
goodwill and allocated to the Group’s cash-generating
units.
Brands
The value of the brands acquired and their expected
useful life are assessed based on the individual
brand’s market position, expected long-term
developments in the relevant markets and
profitability.
The estimated value includes all future cash flows
associated with the brand, including the related value
of customer relations etc.
Management determines the useful life based on the
brand’s relative local, regional and global market
strength, market share, and the current and planned
marketing efforts that are helping to maintain and
increase its value. When the value of a well-
established brand is expected to be maintained for an
indefinite period in the relevant markets, and these
markets are expected to be profitable for a long
period, the useful life of the brand is determined to be
indefinite.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
108
Disposals and loss of control
Gains or losses on the disposal or liquidation of
subsidiaries and associates are recognised as the
difference between the sales price and the carrying
amount of net assets (including goodwill) at the date
of disposal or liquidation, and net of foreign exchange
adjustments recognised in other comprehensive
income, and costs to sell or liquidation expenses.
The shareholding retained after the loss of control of
subsidiaries is remeasured at fair value and accounted
for as the fair value on initial recognition of a financial
asset or the cost of an investment in an associate.
Gains or losses on the loss of control of subsidiaries
are recognised as the difference between the fair
value of the retained shareholding and the carrying
amount of the derecognised net assets (including
goodwill) at the date of loss of control, and net of
foreign exchange adjustments recognised in other
comprehensive income.
SECTION 5.3 (CONTINUED)
ACQUISITIONS
AND DISPOSALS
Brands are measured using the relief from royalty
method, under which the expected future cash flows
are based on key assumptions about expected useful
life, royalty rate, growth rate and the theoretical tax
effect. A post-tax discount rate is used that reflects
the risk-free interest rate with the addition of a risk
premium associated with the particular brand. The
model and assumptions applied are consistent with
those used in impairment testing, and are described in
further detail in section 2.2.4.
Customer agreements and portfolios
The value of acquired customer agreements and
customer portfolios is assessed based on the local
market and trading conditions. For most entities, there
is a close relationship between brands and sales.
Consumer demand for beer and other beverages
drives sales, and therefore the value of a brand is
closely linked to consumer demand, while there is no
separate value attached to customers (shops, bars
etc.), as their choice of products is driven by consumer
demand. The relationship between brands and
customers is carefully considered so that brands and
customer agreements are not both recognised on the
basis of the same underlying cash flows.
Property, plant and equipment
The fair value of land and buildings, and standard
production and office equipment is based, as far as
possible, on the fair value of assets of similar type
and condition that may be bought and sold in the
open market.
Property, plant and equipment for which there is no
reliable evidence of the fair value in the market (in
particular breweries, including production equipment)
are valued using the depreciated replacement method.
This method is based on the replacement cost of a
similar asset with similar functionality and capacity.
The calculated replacement cost is then reduced to
reflect functional and physical obsolescence. The
expected synergies and the user-specific intentions for
the expected use of assets are not included in the
determination of the fair value.
ACCOUNTING
POLICIES
Completed purchase price allocations
Management believes that the purchase prices for
Waterloo Brewing and Jing-A Group’s activities, which
are accounted for in the consolidated financial
statements, reflect the best estimate of the total fair
value of these businesses.
The purchase price allocations of the identified assets,
liabilities and contingent liabilities were completed
within 12 months of the acquisitions. The main
revaluation adjustments related to brands, property,
plant and equipment, and deferred tax liabilities,
which in turn mainly related to brands.
Goodwill
Goodwill related to Waterloo Brewing, DKK 533m,
was allocated to the Central & Eastern Europe CGU in
line with the allocation of the Group’s existing
Canadian business. Goodwill related to Jing-A Group,
DKK 110m, was allocated to the Asia CGU. The
goodwill is not deductible for tax purposes.
Brands
The value of brands was estimated using the Group’s
principles described above. Brands with a fair value of
DKK 164m were recognised and classified as an
intangible asset with an indefinite useful life.
Property, plant and equipment
The fair value and expected useful life of the brewery
equipment and related buildings of the acquired
brewery were determined with assistance from
external engineering experts in the brewery industry
and resulted in a positive revaluation adjustment of
DKK 27m.
Financial impact of acquisitions
In 2023, revenue includes DKK 431m from Waterloo
Brewing and Jing-A Group. Had the acquisitions been
completed at the beginning of the reporting period,
revenue would have included DKK 577m. Profit for the
period includes DKK -29m from Waterloo Brewing
and Jing-A Group. Had the acquisitions been
completed at the beginning of the reporting period,
profit for the period would have included DKK -31m.
Acquisitions
The acquisition date is the date when the Group
effectively obtains control of an acquired subsidiary or
significant influence over an associate.
The cost of a business combination comprises the fair
value of the consideration agreed upon, including the
fair value of any consideration contingent on future
events.
In a step acquisition, the Group gains control of an
entity in which it already held a shareholding before
gaining control. The shareholding held before the step
acquisition is remeasured at fair value at the
acquisition date and added to the fair value of the
consideration paid for the shareholding acquired in
the step acquisition and is accounted for as the total
cost of the shareholding in the acquired entity. The
gain or loss on the remeasurement is recognised in
the income statement under special items.
Goodwill and fair value adjustments in connection
with the acquisition of an entity are treated as assets
and liabilities belonging to the foreign entity and
translated into the foreign entity’s functional currency
at the exchange rate at the transaction date.
The acquired entities’ identifiable assets, liabilities and
contingent liabilities are measured at fair value at the
acquisition date.
Identifiable intangible assets are recognised if they
are separable or arise from a contractual right.
Deferred tax on revaluations is recognised.
The identifiable assets, liabilities and contingent
liabilities on initial recognition at the acquisition date
are subsequently adjusted up until 12 months after the
acquisition. The effect of the adjustments is
recognised in the opening balance of equity, and the
comparative figures are restated accordingly if the
amount is material.
Changes in estimates of contingent purchase
considerations are recognised in the income
statement under special items, unless they qualify for
recognition directly in equity.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
109
SECTION 5.4
CONTINGENT
CONSIDERATIONS
Contingent considerations relate to options held
by non-controlling interests in subsidiaries to
sell their shares to the Group and to deferred
payments in the acquisition of entities
contingent on market conditions.
At the end of the reporting period, the
contingent considerations related to put options
on the shares in CSAPL, Brewery Alivaria in
Belarus, Jing-A Group in China and a minor
craft brewery in Western Europe.
In accordance with the Group’s accounting
policy, shares subject to put options are
consolidated as if the shares had already been
acquired. The ownership percentage at which
these subsidiaries are consolidated therefore
differs from the legal ownership interest held
by the Group. Both the legal and the
consolidated ownership are stated in section 10.
The carrying amount of contingent
considerations is determined in accordance with
the terms and conditions agreed with the
holders of the options.
Of the contingent considerations, DKK 0.3bn
(2022: DKK 0.3bn) is expected to fall due after
more than 12 months.
PUT OPTION FOR SHARES IN CARLSBERG
SOUTH ASIA PTE LTD (CSAPL)
A liability award was issued by the arbitration
tribunal in May 2022. The arbitration tribunal
awarded Carlsberg the right to call our partner
CSAPL Holdings Pte Ltd’s (CSAPLH) shares in
CSAPL. Carlsberg immediately invoked its right
to begin the call option valuation process, and
CSAPLH subsequently exercised its right under
the Shareholders’ Agreement to begin the put
option valuation process.
The put option price was determined as the
simple average of two valuations assessed by
two independent external valuers, which are
internationally recognised accounting firms, one
appointed by each shareholder. The put option
valuation was released by the valuers in
February 2023, stating a value for CSAPLH’s
shares in CSAPL of USD 744m. CSAPLH
subsequently issued a formal put notice to sell
its 33% shareholding in CSAPL to the Group at
the put option valuation amount. The put
option liability recognised in the consolidated
financial statements was adjusted to reflect the
put option valuation amount received from the
valuers, as the acquisition of the shares may be
completed at that price.
The put option valuation was referred to
arbitration by the Group, as the valuation is
considered to have been conducted in breach of
the Shareholders’ Agreement. An arbitration
award is expected to be issued in Q4 2024.
In accordance with the Shareholders’
Agreement, the call option awarded to
Carlsberg by the arbitration panel must be
settled at an amount determined by a valuer
appointed by the International Chamber of
Commerce. The valuer released the call
valuation in July 2023. Carlsberg is satisfied
with the valuation outcome and subsequently
exercised its call option. The call option will
come into effect if the put valuation is
invalidated by the arbitration tribunal.
The recognised value of the put option
decreased by DKK 169m in 2023 because of
changes in the USD exchange rate.
The Group previously called in a loan made to
CSAPLH, the loan having become due and
payable in full. In January 2022, the Singapore
court of appeal finally confirmed that the loan
with interest was repayable to Carlsberg in full,
totalling DKK 354m. The loan had not been
repaid as of 31 December 2023.
Contingent considerations
DKK million
Contingent considerations at 1 January
Additions
Transfer to discontinued operations
Fair value adjustments
Contingent considerations at 31 December
2023
5,577
23
-
-155
5,445
2022
4,254
-
-13
1,336
5,577
ACCOUNTING ESTIMATES
AND JUDGEMENTS
The fair value of contingent considerations linked to
put options is measured on the basis of level 3 input
consisting of non-observable data, such as entity-
specific discount rates and industry-specific
expectations of price developments, and generally
accepted valuation methods, including discounted
cash flows and multiples.
ACCOUNTING
POLICIES
On acquisition of non-controlling interests, i.e.
subsequent to the Group obtaining control, acquired
net assets are not measured at fair value. The
difference between the cost and the non-controlling
interests’ share of the total carrying amount, including
goodwill, is transferred from the non-controlling
interests’ share of equity to equity attributable to
shareholders in Carlsberg A/S. The amount deducted
cannot exceed the non-controlling interests’ share of
equity immediately before the transaction.
On disposal of shareholdings to non-controlling
interests, the difference between the sales price and
the share of the total carrying amount, including
goodwill acquired by the non-controlling interests, is
transferred from equity attributable to shareholders in
Carlsberg A/S to the non-controlling interests’ share
of equity.
Fair value adjustments of put options granted to non-
controlling interests are recognised directly in the
statement of changes in equity.
Other contingent considerations (earn-outs) that are
not linked to a future transfer of additional
shareholdings are measured in accordance with the
terms of the contract with the seller. The revaluation
of such contingent considerations is recognised in
special items.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
110
SECTION 5.5
ASSOCIATES
Investments in associates mainly include the
businesses in Portugal (60%), Myanmar (61%),
Gorkha Brewery in Nepal (90%), Carlsberg
Byen in Denmark (25%) and four associates in
China (50%). The total investment in these
associates amounted to DKK 4,340m at 31
December 2023 (2022: DKK 4,307m).
The Group’s ownership of Super Bock Group,
Portugal, is 60%. Nevertheless, Super Bock
remains an associate of the Group due to the
ownership structure. Please refer to section 10
for further details.
Disputes with the local non-controlling
shareholder of Gorkha Brewery, Nepal, prevent
the Group from exercising its rights as a
controlling shareholder despite the legal
ownership of 90%. Therefore, it was reclassified
as an associate and recognised at fair value in
December 2021.
Despite the 61% legal ownership share in
Myanmar Carlsberg, the entity is classified as
an associate due to the structure of the
agreement with the partner and the business
environment in the country.
In Q4 2023, Carlsberg gained control of the
associate Jing-A Group through a step
acquisition, cf. section 5.3.
In 2023, the Group recognised a write-down of
a minor associate in Cambodia of DKK 49m, cf.
section 2.2.
For associates in which the Group holds an
ownership interest of less than 20% and
participates in the management of the
associate, the Group is considered to be
exercising significant influence. None of the
associates are material to the Group.
Fair value of investment in listed associates
DKK million
The Lion Brewery
Ceylon, Sri Lanka
2023
2022
384
214
ACCOUNTING
POLICIES
Investments in associates are recognised according to
the equity method, which entails measurement at cost
and adjustment for the Group’s share of the profit or
loss and other comprehensive income of the associate
after the date of acquisition. The share of the result
must be calculated in accordance with the Group’s
accounting policies. The proportionate share of
unrealised intra-group profits and losses is eliminated.
Investments in associates with negative net asset
values are measured at DKK 0.
If the Group has a legal or constructive obligation to
cover a deficit in the associate, the deficit is
recognised under provisions. Any amounts owed by
associates are written down to the extent that the
amount owed is deemed irrecoverable.
Key figures for associates
DKK million
2023
Total
2022
Total
Carlsberg Group share
Other
comprehensive
income
Total
comprehensive
income
-
-
581
901
Profit
after tax
581
901
Investments in
associates
5,437
5,523
SECTION 6
TAX
18.9%
TAX RATE
Total tax is impacted by non-
recurring items. Excluding non-
recurring tax impacts the effective tax
rate would have been 20.8% (2022:
20.5%).
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
111
SECTION 6.1
INCOME TAX
The nominal weighted tax rate for the Group is
calculated as the domestic tax rates applicable
to profits in the entities as a proportion of each
entity’s share of the Group’s profit before tax.
The Group’s total tax cost was DKK 110m less
than the nominal weighted tax (2022: DKK
389m). Compared with the nominal weighted
tax expense, the total tax expense was
impacted by tax incentives related to e.g. R&D
incentives, non-deductible expenses and
increased withholding tax expenses, resulting in
an effective tax rate of 18.9% (2022: 17.9%).
The impact from non-recurring items primarily
comprised movement in tax on special items,
change in recognised tax assets and liabilities
and the deconsolidation of the Russian
Business. Excluding non-recurring items and tax
thereon, the effective tax rate would have been
20.8% (2022: 20.5%).
The Carlsberg Group is not expected to be
materially impacted by the OECD/EU Pillar
Two Model Rules and their local
implementation. Most countries where the
Group has operations impose taxation in excess
of 15%, and the remainder are expected to
increase the tax rate such that all markets not
covered by the transitional safe harbour rules
are still expected to show an effective tax rate
in excess of 15%.
As such, these rules are not expected to result
in either materially increased tax payments or a
change to the Group’s effective tax rate.
ACCOUNTING
POLICIES
Income tax comprises current tax and changes in
deferred tax for the year, including changes as a
result of a change in the tax rate. The tax expense
relating to the profit/loss for the year is recognised in
the income statement, while the tax expense relating
to items recognised in other comprehensive income is
recognised in the statement of comprehensive income.
If the Group obtains a tax deduction on computation
of the taxable income in Denmark or in foreign
jurisdictions as a result of share-based payment
programmes, this tax effect of the programmes is
recognised in tax on profit/loss for the year.
Reconciliation of the effective tax rate for the year
Nominal weighted tax rate
Change in tax rate
Adjustments to tax for prior years
Non-capitalised tax assets and liabilities
Non-taxable income
Non-deductible expenses
Tax incentives etc.
Special items
Withholding taxes
Other, including tax in associates
Effective tax rate for the year
Effective tax rate for the year, excluding the
tax effect of transactions in special items and
other non-recurring tax impacts
2023
DKK million
1,969
-5
16
-428
-29
248
-168
219
141
-104
1,859
2022
DKK million
2,167
206
-393
-216
-22
214
-229
126
83
-158
1,778
%
21.7
2.1
-3.8
-2.2
-0.2
2.1
-2.3
1.3
0.8
-1.6
17.9
-
20.5
-
%
20.0
-
0.2
-4.4
-0.3
2.5
-1.7
2.3
1.4
-1.1
18.9
20.8
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
112
SECTION 6.1 (CONTINUED)
INCOME TAX
Income tax expenses
DKK million
Tax for the year can be specified as follows
Current tax
Change in deferred tax and non-current tax payables during the
year
Change in deferred tax as a result of change in tax rate
Adjustments to tax for prior years
Total
Tax recognised in other comprehensive income
Income
statement
Other
comprehensive
income
Total
comprehensive
income
Income
statement
Other
comprehensive
income
Total
comprehensive
income
2023
2022
2,012
-164
-5
16
1,859
-8
80
-
-
72
2,004
-84
-5
16
1,931
2,205
-240
206
-393
1,778
-25
-2
-
-
-27
2,180
-242
206
-393
1,751
DKK million
Foreign exchange adjustments
Hedging instruments
Retirement benefit obligations
Total
Recognised
item before tax
Tax income/
expense
-37,781
-920
73
-38,628
-
44
28
72
2023
After tax
-37,781
-876
101
-38,556
Recognised
item before tax
Tax income/
expense
3,926
759
-586
4,099
-
-100
73
-27
2022
After tax
3,926
659
-513
4,072
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
113
No deferred tax (2022: DKK 23m) has been
recognised in respect of future dividend
distributions. No deferred tax liability was
recognised from the loss of control and de-
consolidation of the discontinued operation in
Russia.
Carlsberg operates in a large number of tax
jurisdictions where tax legislation is highly complex
and subject to interpretation. Management assesses
uncertain tax positions to ensure recognition and
measurement of tax assets and liabilities.
ACCOUNTING
POLICIES
Distribution of reserves for other subsidiaries
will not trigger a significant tax liability based
on current tax legislation.
Current tax payable and receivable are recognised in
the statement of financial position as tax for the year,
adjusted for tax related to prior years and tax paid.
SECTION 6.2
TAX ASSETS AND
LIABILITIES
Of the total deferred tax assets recognised,
DKK 249m (2022: DKK 285m) relates to tax
losses carried forward, the utilisation of which
depends on future positive taxable income
exceeding the realised deferred tax liabilities. It
is management’s opinion that these tax losses
carried forward can be utilised within the
foreseeable future.
Tax assets not recognised of DKK 1,194m
(2022: DKK 1,123m) primarily relate to tax
losses that are not expected to be utilised in the
foreseeable future. Of these, tax losses that will
not expire amounted to DKK 922m (2022: DKK
932m). Tax losses of DKK 287m (2022: DKK
342m) can only be carried forward for a limited
number of years.
Changes to non-current tax assets and liabilities
Changes in deferred tax and non-current tax
payables recognised in the income statement
for the year amounted to DKK 164m (2022:
DKK 240m).
ACCOUNTING ESTIMATES
AND JUDGEMENTS
The Group recognises deferred tax assets, including
the expected tax value of tax loss carried forward, if
management assesses it can be offset against positive
taxable income in the foreseeable future. This
assessment is made annually and based on budgets
and business plans for the coming years, including
planned commercial initiatives under our control.
DKK million
Tax assets and liabilities at 1 January, net
Tax assets and liabilities, net, reclassified to discontinued operations
Adjustments to prior years
Acquisition of entities
Recognised in other comprehensive income
Recognised in the income statement, net, continuing operations
Change in tax rate
Foreign exchange adjustments
Tax assets and liabilities at 31 December, net
Recognised as follows
Tax liabilities
Tax assets
Tax assets and liabilities at 31 December, net
2023
3,110
-
33
43
80
-164
-5
-84
3,013
4,823
-1,810
3,013
2022
4,428
-1,645
290
-
-2
-240
206
73
3,110
4,841
-1,731
3,110
Deferred tax on all temporary differences between
the carrying amount and the tax base of assets and
liabilities is measured using the balance sheet liability
method. However, deferred tax is not recognised on
temporary differences relating to goodwill that is not
deductible for tax purposes or on office premises and
other items where temporary differences, apart from
business combinations, arise at the acquisition date
without affecting either profit/loss for the year or
taxable income.
Where alternative tax rules can be applied to
determine the tax base, deferred tax is measured
based on the planned use of the asset or settlement
of the liability.
Specification of deferred tax
DKK million
Intangible assets
Property, plant and equipment
Current assets and liabilities
Provisions and retirement benefit obligations
Fair value adjustments
Tax losses
Other
Total before offset
Offset
Deferred tax assets and liabilities at 31 December
Expected to be used as follows
Within one year
After more than one year
Total
Deferred tax assets, related to tax loss carried
forward, are recognised at the expected value of their
utilisation, or as a set-off against deferred tax
liabilities in the same legal tax entity and jurisdiction.
Deferred tax assets and tax liabilities are offset if the
entity has a legally enforceable right to offset current
tax liabilities and tax assets or intends either to settle
current tax liabilities and tax assets or to realise the
assets and settle the liabilities simultaneously.
Deferred tax assets are recognised only to the extent
that it is probable that the assets will be utilised.
Deferred tax is measured according to the tax rules at
the reporting date and at the tax rates applicable
when the deferred tax is expected to materialise as
current tax. The change in deferred tax as a result of
changes in tax rates is recognised in the income
statement. Changes to deferred tax on items
recognised in other comprehensive income are,
however, recognised in other comprehensive income.
Carlsberg has applied the exception to recognise and
disclose information about deferred tax in the OECD/
EU Pillar Two Model Rules and their local
implementation.
Deferred tax assets
Deferred tax liabilities
2023
114
458
919
484
133
249
213
2,570
-760
1,810
899
911
1,810
2022
253
139
1,000
518
39
285
250
2,484
-753
1,731
890
841
1,731
2023
2,031
947
126
2,350
97
-
32
5,583
-760
4,823
387
4,436
4,823
2022
1,956
1,041
46
2,509
17
-
25
5,594
-753
4,841
515
4,326
4,841
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
114
The average number of employees in the
continuing operations increased, partly driven
by the acquisition of Waterloo Brewing, cf.
section 5.3.
SECTION 7
STAFF COSTS AND
REMUNERATION
Pensions
Defined benefit obligations were affected by
lower discount rates across markets.
EMPLOYEES BY SEGMENT1 (%)
2023 (2022)
SECTION 7.1
STAFF COSTS
Staff costs, continuing operations, increased in
2023, due to salary increases, partly offset by
lower accruals for bonuses and currencies.
Staff costs
DKK million
Salaries and other remuneration
Severance payments
Social security costs
Retirement benefit costs – defined contribution plans
Retirement benefit costs – defined benefit plans
Share-based payments
Other employee benefits
Total
Of which:
Continuing operations
Discontinued operation¹
Total
EMPLOYEES BY FUNCTION1 (%)
2023 (2022)
Staff costs are included in the following line items in the income statement
Cost of sales
Sales and distribution expenses
Administrative expenses
Other operating activities, net
Financial expenses (pensions)
Special items (restructurings)
Loss from discontinued operations
Total
1 Continuing operations only.
Average number of employees, continuing operations
Average number of employees, discontinued operation¹
Average number of employees
¹ Discontinued operation comprise only six months of data in 2023.
2023
9,195
43
1,340
417
167
130
149
2022
9,430
57
1,453
391
181
97
113
11,441
11,722
10,835
606
11,441
3,075
5,428
2,147
107
30
48
606
11,441
31,044
3,938
34,982
10,388
1,334
11,722
2,911
5,150
2,132
95
38
62
1,334
11,722
30,834
8,072
38,906
Western Europe 32% (33%)Asia 44% (45%)Central & Eastern Europe 20% (19%)Other 4% (3%)Production 36% (36%)Sales & Distribution 54% (55%)Administration 10% (9%) CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
115
PERFORMANCE SHARES
The number of performance shares granted is
the maximum number of performance shares
that can vest. The number of shares
outstanding at the end of the period is the
number expected to vest, based on the extent
to which the vesting conditions are expected to
be met. The number of shares expected to vest
is revised on a regular basis.
In 2023, 157 employees (2022: 160 employees)
across the Group were awarded performance
shares.
For the 2023 grant, vesting is subject to
achievement of five KPIs: total shareholder
return, adjusted EPS growth, organic revenue
growth, growth in ROIC and achievement of
ESG targets. For prior grants yet to vest, vesting
is subject to four KPIs: total shareholder return,
adjusted EPS growth, organic revenue growth
and growth in ROIC. The average share price at
vesting was DKK 964 (2022: DKK 1,086). The
average contractual life at the end of 2023 was
1.3 years (2022: 1.2 years).
SECTION 7.2
REMUNERATION
The remuneration of the Supervisory Board, the
executive directors and key management
personnel is described in detail in the
Remuneration Report.
The remuneration of the executive directors
increased, driven by compensation paid to
Jacob Aarup-Andersen and Ulrica Fearn for
forfeited long-term incentive awards from their
previous employers. The remuneration of key
management personnel declined in 2023,
mainly due to lower accruals for the annual
cash bonus.
In 2023, the Supervisory Board received total
remuneration of DKK 10.31m (2022: DKK
10.36m), comprising fixed salary only.
All elements except for share-based payments
are classified as short-term employee benefits.
Share-based payments are classified as long-
term employee benefits.
SECTION 7.3
SHARE-BASED
PAYMENTS
ACCOUNTING
POLICIES
Staff costs are recognised in the financial year in
which the employee renders the related service.
The cost of share-based payments, which is expensed
over the vesting period of the programme according
to the service conditions, is recognised in staff costs
and provisions or equity, depending on how the
programme is settled with the employees.
Key management personnel comprise the Executive
Committee, excluding the executive directors. Other
management personnel included in the share-based
payment schemes comprise vice presidents and other
key employees in central functions as well as the
management of significant subsidiaries.
The Group has set up share-based incentive
programmes to attract, retain and motivate the
Group’s executive directors and other levels of
management personnel, and to align their
interests with those of the shareholders. There
is no share-based remuneration of the
Supervisory Board.
The Group has one type of share-based
payment known as performance shares.
Entitlement to performance shares requires
fulfilment of service in the vesting period (3
years) but does not have any exercise price.
Instead, the shares are transferred to the
recipients based on achievement of the KPIs
attached to the shares.
Remuneration
DKK million
Fixed salary
Cash bonus
Other benefits
Cash compensation for forfeited LTI²
Severance payments
Remuneration settled in cash
Non-monetary benefits
Share-based payments
Remuneration, non-monetary and
share-based
Total cash and non-cash
Executive directors¹
2023
Former
2022
Former
Key management
personnel
2023
2022
11.2
11.2
0.5
-
-
22.9
0.1
35.3
35.4
58.3
21.0
19.4
1.1
-
-
41.5
0.4
28.0
28.4
69.9
27.5
21.7
4.2
-
4.8
58.2
2.5
13.9
16.4
74.6
28.8
28.7
7.9
-
7.5
72.9
0.2
9.5
9.7
82.6
Current
11.4
10.6
0.2
12.9
-
35.1
1.3
16.0
17.3
52.4
¹ Executive directors consist of Jacob Aarup-Andersen and Ulrica Fearn. Cees 't Hart resigned as CEO on 31 August
2023, but was remunerated for an additional two months where he supported the company in an advisory capacity.
² As compensation for long-term incentive awards forfeited from their previous employers, Jacob Aarup-Andersen and
Ulrica Fearn were paid DKK 12m and DKK 0.9m respectively, amounts that were used for the purchase of Carlsberg
shares. Jacob Aarup-Andersen was also added to the running 2022-2024 and 2023-2025 long-term incentive schemes.
Further information can be found in the Remuneration Report.
SECTION 7.3 (CONTINUED)
SHARE-BASED
PAYMENTS
Performance shares
31 December 2021
Granted
Forfeited/adjusted/transferred
Exercised/settled
31 December 2022
Granted
Forfeited/adjusted/transferred
Exercised/settled
31 December 2023
¹ Including retired employees.
Performance share disclosures
DKK million
Fair value at grant date
Cost of shares granted in the year
Total cost of performance shares
Cost not yet recognised
Fair value at 31 December
Executive
directors
Key
management
personnel
Other
management
personnel¹
136,178
33,753
-7,263
-45,999
116,669
85,487
-127,722
-24,536
49,898
40,127
20,071
-1,028
-11,743
47,427
21,826
-17,388
-10,758
41,107
235,786
109,528
-16,460
-83,898
244,956
99,995
21,483
-76,335
290,099
2023
121
44
130
148
254
Total
412,091
163,352
-24,751
-141,640
409,052
207,308
-123,627
-111,629
381,104
2022
88
25
97
150
306
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
116
Key information
Assumptions
Expected volatility
Risk-free interest rate
Expected dividend yield
Expected life, years
Fair value at measurement date
Performance shares
2023
2022
23.0%
2.8%
24.0%
1.3%
0.0/2.7%
0.0/2.4%
3.0
3.0
DKK 570-989
DKK 404-987
ACCOUNTING ESTIMATES
AND JUDGEMENTS
ACCOUNTING
POLICIES
The volatility of performance shares is based on the
historical volatility of the price of Carlsberg A/S’ class
B shares over the previous three years. For share
options, the volatility is based on similar data over the
previous eight years.
The share price and the exercise price of share options
are calculated as the average price of Carlsberg A/S’
class B shares on Nasdaq Copenhagen during the first
five trading days after publication of Carlsberg A/S’
financial statements.
The risk-free interest rate is based on Danish
government bonds of the relevant maturity. The
expected life is based on exercise at the end of the
exercise period.
The fair value of granted performance shares is
estimated using a stochastic (quasi-Monte Carlo)
valuation model of market conditions and a Black-
Scholes call option-pricing model of non-market and
service conditions, taking into account the terms and
conditions upon which the performance shares were
granted. The market condition is based on a ranking
of the total shareholder return of Carlsberg A/S’ class
B shares versus a peer group of publicly traded
companies in the alcoholic beverage sector.
On initial recognition of performance shares, the
number of awards expected to vest is estimated and
subsequently revised for any changes. Accordingly,
recognition is based on the number of awards that
ultimately vest.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
117
The most significant plans are in the UK and
Switzerland, representing 42% and 46%
respectively (2022: 42% and 44%), while the
eurozone countries represented 5% (2022: 5%)
of the gross obligation at 31 December 2023.
Obligation, net
DKK million
2023
2022
Present
value of
obligation
Fair value
of plan
assets
Obligation,
net
Present
value of
obligation
Fair value
of plan
assets
Obligation,
net
Obligation at 1 January
9,527
7,970
1,557
13,851
11,506
2,345
The majority of the obligations are funded, with
assets placed in independent pension funds,
mainly in Switzerland and the UK. Most of the
plan assets are quoted investments. In some
countries, primarily Germany, Sweden and
China, the obligation is unfunded. The
retirement benefit obligations for these
unfunded plans amounted to DKK 1,134m
(2022: DKK 1,180m) or 11% (2022: 12%) of the
gross obligation.
In 2023, the Group’s obligation, net, on defined
benefit plans decreased by DKK 170m
compared with 2022. Changes in financial
assumptions impacted the obligation; in
particular in the UK (DKK 86m) and in
Switzerland (DKK 250m). The increase in
obligation in Switzerland was partly offset by
the effect of the asset ceiling of DKK -204m.
Moreover, foreign exchange adjustments
affected the net obligation by DKK -68m.
Recognised in the income
statement¹
Current service cost
Past service cost
Net interest on the net defined
benefit obligation (asset)
Total
Remeasurements
Gain/loss from changes in
demographic assumptions
Gain/loss from changes in
financial assumptions
Asset ceiling
Total
Other changes
Contributions to plans
Benefits paid
Transferred to liabilities in
discontinued operations
Foreign exchange adjustments
etc.
Total
Obligation at 31 December
169
-2
339
506
-57
392
-
335
-
-567
-
260
-307
10,061
-
-
309
309
-
58
204
262
295
-490
-
328
133
8,674
169
-2
30
197
-57
334
-204
73
-295
-77
-
-68
-440
1,387
192
-11
158
339
-
-
120
120
192
-11
38
219
-89
-
-89
-3,823
-
-3,912
-
-760
-6
15
-751
9,527
-2,757
-569
-3,326
242
-681
-
109
-330
7,970
-1,066
569
-586
-242
-79
-6
-94
-421
1,557
¹ The total return on plan assets for the year amounted to DKK 367m (2022: DKK -2,637m).
SECTION 7.4
RETIREMENT
BENEFIT
OBLIGATIONS
AND SIMILAR
OBLIGATIONS
A number of employees are covered by
retirement benefit plans. The nature of the
plans varies depending on labour market
conditions in the individual countries. Benefits
are generally based on wages/salaries and
length of employment.
Retirement benefit obligations cover both
present and future retirees’ entitlement to
retirement benefits.
DEFINED CONTRIBUTION PLANS
A defined contribution plan is a post-
employment benefit plan under which the
Group pays contributions to a separate
independent company. The Group’s legal or
constructive obligation is limited to the
contributions.
In 2023, 71% (2022: 68%) of the Group’s
retirement benefit costs related to defined
contribution plans. The expense recognised in
relation to these contributions was DKK 417m
(2022: DKK 391m).
DEFINED BENEFIT PLANS
A defined benefit plan guarantees employees a
certain level of pension benefits for life. The
pension is based on seniority and salary at the
time of retirement. The Group assumes the risk
associated with future developments in interest
rates, inflation, mortality and disability etc.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
118
SECTION 7.4 (CONTINUED)
RETIREMENT
BENEFIT
OBLIGATIONS
AND SIMILAR
OBLIGATIONS
The Group has a three-yearly valuation process
to agree on any future funding arrangements in
the UK. The most recent one was completed in
2022. The Group expects to contribute DKK
104m (2022: DKK 109m) to the plan assets in
2024, which is in line with the agreed funding
arrangement, under which the Group will
contribute DKK 311m up to 2026. Plan assets do
not include shares in the Group or properties
used by Group companies.
The actuarial gain and foreign exchange
adjustment recognised in other comprehensive
income amounted to DKK 27m (2022: DKK
543m), comprising a foreign exchange
adjustment of DKK 48m and a net actuarial
gain of DKK 73m.
The accumulated actuarial loss and foreign
exchange adjustment recognised at 31
December 2023 was DKK 2,345m (2022:
DKK 2,322m), with actuarial net losses of
DKK 2,639m (2022: DKK 2,566m).
Assumptions applied
In 2023, the discount rate used for the defined
benefit plans in Western Europe was
determined by reference to market yields on
high-quality corporate bonds. In the Asian
countries, where no deep market in high-quality
corporate bonds exists, the discount rate was
determined by reference to market yields on
government bonds.
The mortality tables used in Carlsberg UK are
S3PMA/S3PFA_M tables for post-retirement,
while the Swiss entities use BVG 2020 for
valuation of their retirement benefit obligations.
Sensitivity analysis
The sensitivity analysis is based on a change in
one of the assumptions, while all other
assumptions remain constant. This is highly
unlikely, however, as a change in one
assumption would probably affect other
assumptions as well. When calculating the
obligation on the basis of a changed
assumption, the same method has been applied
as when calculating the defined benefit
obligation.
Expected maturity and duration
Defined benefit obligations are primarily
expected to mature after five years. The
expected duration of the obligations at year-
end 2023 was 12 years. The duration is
calculated using a weighted average of the
duration divided by the obligation.
Breakdown of plan assets
Shares¹
Bonds and other securities
Real estate
Cash and cash equivalents
Total
DKK
million
1,098
6,197
1,643
284
9,222
2023
%
12
67
18
3
100
DKK
million
970
5,390
2,122
193
8,675
2022
%
11
62
24
2
100
¹ The breakdown of plan assets excludes the asset ceiling of DKK -548m in 2023 (2022: DKK -705m).
Assumptions applied
2023
Discount rate
Growth in wages and salaries
2022
Discount rate
Growth in wages and salaries
Sensitivity analysis
DKK million
Discount rate
Growth in wages and salaries
Mortality
CHF
1.9%
1.2%
2.3%
1.2%
GBP
4.8%
3.6%
EUR
2.1-4%
2.5-4.5%
5.0%
3.6%
1.5-3.8%
0.2-4.5%
+0.5%
-573
25
+1 year
302
2023
-0.5 %
639
-22
-1 year
-306
Other
3.5%
4.9%
3.8%
2.5%
+0.5%
-541
23
+1 year
265
Weighted
average
3.3%
2.4%
3.7%
2.5%
2022
-0.5 %
597
-19
-1 year
-282
Maturity of retirement benefit obligations
DKK million
2023
2022
< 1 year
1-5 years
> 5 years
606
585
2,764
2,570
6,691
6,372
Total
10,061
9,527
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
119
SECTION 7.4 (CONTINUED)
RETIREMENT
BENEFIT
OBLIGATIONS
AND SIMILAR
OBLIGATIONS
ACCOUNTING ESTIMATES
AND JUDGEMENTS
The value of the Group’s defined benefit plans is
based on valuations from external actuaries. The
valuation is based on a number of actuarial
assumptions, including discount rates, expected
growth in wages and salaries, mortality and
retirement benefits.
The present value of the net obligation is calculated
by using the projected unit credit method and
discounting the defined benefit plan by a discount
rate for each country. The discount rate is determined
by reference to market yields on high-quality
corporate bonds. Where high-quality corporate bonds
are not available, the market yields on government
bonds are used instead.
Mortality assumptions are based on the Group
entity’s best estimate of the mortality of plan
members during and after employment and include
expected changes in mortality. Due to the broad
range of entities comprising the retirement benefit
obligation, several different mortality tables are used
to calculate the future retirement benefit obligation.
ACCOUNTING
POLICIES
Contributions paid to a defined contribution plan are
recognised in the income statement in the period
during which services are rendered by employees. Any
contributions outstanding are recognised in the
statement of financial position as other liabilities.
The Group’s net obligation recognised in the
statement of financial position in respect of defined
benefit plans is the present value of the defined
benefit obligation at the reporting date less the fair
value of plan assets calculated by a qualified actuary.
The present value is determined separately for each
plan by discounting the estimated future benefits that
employees have earned in return for their service in
the current and prior years.
The costs of a defined benefit plan are recognised in
the income statement and include service costs, net
interest based on actuarial estimates and financial
expectations.
Service costs comprise current service cost and past
service cost. Current service cost is the increase in the
present value of the defined benefit obligation
resulting from employee services in the current period.
Past service cost is the change in the present value of
the obligation regarding employee services in prior
years that arises from a plan amendment or a
curtailment. Past service costs are recognised
immediately, provided employees have already
earned the changed benefits.
Realised gains and losses on curtailment or
settlement are recognised under staff costs.
Interest on retirement benefit obligations and the
interest on return on plan assets are recognised as
financial income or financial expenses.
Differences between the development in retirement
benefit assets and liabilities and realised amounts at
year-end are designated as actuarial gains or losses
and recognised in other comprehensive income. As
they will never be reclassified to the income
statement, they are included in retained earnings.
If a retirement benefit plan constitutes a net asset, the
asset is recognised only if it offsets future refunds
from the plan or will lead to reduced future payments
to the plan.
Realised gains and losses on the adjustment of
retirement benefit obligations as a result of
termination of a significant number of positions in
connection with restructurings are recognised under
special items.
SECTION 8
OTHER DISCLOSURE
REQUIREMENTS
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
120
7,425m
Profit attributable to shareholders in
Carlsberg A/S, adjusted for special items
after tax and loss from the discontinued
operations (DKK).
54.6
Earnings per share, adjusted for special
items after tax, continuing operations
(DKK).
SECTION 8.1
EARNINGS PER
SHARE
During 2023, the Group repurchased a total
of 3.3 million B shares under the share
buy-back programmes. The share buy-
back programmes decreased the average
number of shares by 3.7 million, which in
turn increased adjusted earnings per share
by DKK 1.5. The adjustment for special
items after tax increased adjusted earnings
per share by DKK 3.5.
For all share-based incentive instruments,
the average market price of Carlsberg B
shares, including the fair value of services
to be received in the future, exceeded the
exercise price and the fair value at the
grant date. As a result, diluted earnings per
share included all share-based incentive
instruments that could potentially dilute
earnings in the future.
Earnings per share
DKK
Earnings per share of DKK 20 (EPS)
Continuing operations
Discontinued operations
Diluted earnings per share of DKK 20 (EPS-D)
Continuing operations
Discontinued operations
Earnings per share, adjusted (EPS-A)
Continuing operations
Discontinued operations
Average number of shares
1,000 shares
Average number of issued shares
Average number of treasury shares
Average number of shares
Average dilutive effect of share-based incentives
Diluted average number of shares
Profit attributable to shareholders
DKK million
Profit for the period
Non-controlling interests
Profit attributable to shareholders in Carlsberg A/S (net profit)
Special items after tax in continuing and discontinued operations
Profit attributable to shareholders in Carlsberg A/S, adjusted
Loss from discontinued operations adjusted for special items after tax
Profit attributable to shareholders in Carlsberg A/S, adjusted, continuing operations
2023
-299.7
51.1
-350.8
-299.7
51.0
-350.8
60.0
54.6
5.4
2022
-7.6
50.1
-57.7
-7.6
50.0
-57.7
69.3
55.7
13.6
138,590
-2,501
136,089
366
142,527
-2,692
139,835
368
136,455
140,203
-39,777
-1,011
-40,788
48,951
8,163
-738
7,425
108
-1,171
-1,063
10,757
9,694
-1,909
7,785
SECTION 8.2
SECTION 8.3
FEES TO AUDITORS
RELATED PARTIES
Fees to auditors appointed by the
Annual General Meeting
DKK million
2023
2022
PwC, including network
firms
Statutory audit
Assurance engagements
Tax advisory
Other services
Total
29
2
3
1
35
25
1
8
2
36
Fees for services other than the statutory audit
of the financial statements provided by
PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab, Denmark, amounted
to DKK 2m (2022: DKK 1m). This includes other
assurance opinions, agreed-upon procedures as
well as tax, accounting, and compliance related
services.
RELATED PARTIES EXERCISING CONTROL
The Carlsberg Foundation, H.C. Andersens
Boulevard 35, 1553 Copenhagen V, Denmark,
exercises control over Carlsberg A/S. The
Foundation holds 29.4% of the shares and
76.7% of the voting power in Carlsberg A/S,
excluding treasury shares.
The following transactions took place between
the Carlsberg Foundation and the Group
in 2023:
The Carlsberg Foundation received a dividend
of DKK 27.00 per share from Carlsberg A/S, the
same as every other shareholder. The dividend
received amounted to DKK 1,115m.
The Carlsberg Foundation participates in the
share buy-back programme on a 30.33% pro
rata basis. In 2023, the Carlsberg Foundation
sold B shares to Carlsberg A/S at a fair value of
DKK 971m. The number of A shares held by the
Foundation remains unchanged, explaining why
the ownership share increased to 29.4% at 31
December 2023 (2022: 29.2%). The shares were
sold at the average weekly share buy-back
market prices.
FUNDING AND GRANTS
Carlsberg A/S received statutory grants and
further funding from the Carlsberg Foundation,
in total DKK 86m, for the basic research and
development activities at the Carlsberg
Research Laboratory (2022: DKK 69m). Of the
total grants, DKK 18m (2022: DKK 22m) was
deferred to be used for research projects in the
future.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
121
these parties and the Group, except for
remuneration as disclosed in section 7.
Related party transactions with associates
recognised in the income statement and the
statement of financial position
DKK million
2023
2022
Associates
Revenue
Cost of sales
Sales expenses
Interest income
Loans
Receivables
Trade payables and other
liabilities
22
-733
-9
22
273
448
-70
19
-712
-9
27
277
394
-49
SECTION 8.4
EVENTS AFTER THE
REPORTING PERIOD
Apart from the events recognised or disclosed
in the consolidated financial statements, no
events have occurred after the reporting period
of importance to the consolidated financial
statements.
In 2023, the Carlsberg Foundation contributed
an additional amount of DKK 13m to Home of
Carlsberg A/S to support the rebuilding of the
Carlsberg Visitor Centre.
OTHER ACTIVITIES
Home of Carlsberg A/S, a 100%-owned
subsidiary of the Carlsberg Group, hosted and
administered events at the Carlsberg Academy,
which is owned by the Carlsberg Foundation, at
a value of DKK 1m.
The Group’s delivery of beer and soft drinks to
the Carlsberg Foundation is charged at ordinary
listing price minus a discount. In 2023, the
deliveries amounted to DKK 0.1m (total sales of
goods) (2022: DKK 0.3m).
Carlsberg A/S leases parking spaces from the
Carlsberg Foundation to provide parking for
employees at the Carlsberg Research
Laboratory and Visit Carlsberg. Furthermore,
Carlsberg Breweries A/S leases storage facilities
in the researcher apartments in Carlsberg Byen.
These lease agreements are with subsidiaries of
the Foundation. The two annual lease
payments amount to DKK 0.2m and the leases
are on market terms.
It is estimated that the benefit to the Carlsberg
Group corresponds to the value of the other
activities provided to the Carlsberg Foundation,
which in turn corresponds to what each party
would have had to pay to have the same
deliverables provided by external parties.
OTHER RELATED PARTIES
Related parties also comprise Carlsberg A/S’
Supervisory Board and Executive Board, their
close family members and companies in which
these persons have significant influence. During
the year, there were no transactions between
SECTION 9
BASIS FOR
PREPARATION
Areas involving significant estimates and judgements:
Receivables
Impairment testing, useful life and
residual value
Restructurings, provisions and
contingencies
Discontinued operations
Acquisitions and disposals, including
contingent considerations
Tax assets and liabilities
Defined benefit obligations
Section 1
Section 2
Section 3
Section 5
Section 5
Section 6
Section 7
SECTION 9.1
SIGNIFICANT
ACCOUNTING
ESTIMATES AND
JUDGEMENTS
The consolidated financial statements cover the
period 1 January to 31 December. In preparing
the consolidated financial statements,
management makes various accounting
estimates and judgements that form the basis
of presentation, recognition and measurement
of the Group’s assets, liabilities, income and
expenses.
Other estimates and judgements made are
based on historical experience and other factors
that management assesses to be reliable, but
that, by their nature, are associated with
uncertainty and unpredictability and may
therefore prove incomplete or incorrect.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
122
SECTION 9.2
GENERAL
ACCOUNTING
POLICIES
The Group’s consolidated financial statements
for 2023 have been prepared in accordance
with IFRS Accounting Standards as adopted by
the EU and further requirements in the Danish
Financial Statements Act.
The consolidated financial statements are
presented in Danish kroner (DKK), which is the
Parent Company’s functional currency, and all
values are rounded to the nearest DKK million,
except when otherwise stated.
The accounting policies set out below have
been used consistently in respect of the
financial year and the comparative figures.
DEFINING MATERIALITY
Significant items are presented individually in
the financial statements as required by IAS 1.
Other items that are considered relevant to
stakeholders and necessary for an
understanding of the Group’s business model,
including research, real estate and geographical
diversity, are also presented individually in the
financial statements.
The consolidated financial statements are
prepared as a consolidation of the financial
statements of the Parent Company, Carlsberg
A/S, and its subsidiaries according to the
Group’s accounting policies.
Subsidiaries are all the entities over which the
Group has control. The Group controls an entity
when the Group is exposed to, or has rights to,
variable returns from its involvement with the
entity and has the ability to affect those returns
through its power to direct the activities of the
entity.
Entities over which the Group exercises
significant influence, but which it does not
control, are considered associates. Significant
influence is generally obtained by direct or
indirect ownership or control of less than 50%
of the voting rights or participation in the
management of the company. The assessment
of whether Carlsberg A/S exercises control or
significant influence includes potential voting
rights exercisable at the reporting date. Entities
that by agreement are managed jointly with
one or more other parties are considered joint
ventures.
On consolidation, intra-group income and
expenses, shareholdings, balances and
dividends, and realised and unrealised gains are
eliminated. Unrealised gains on transactions
SECTION 9.2 (CONTINUED)
GENERAL
ACCOUNTING
POLICIES
with associates are eliminated in proportion to
the Group’s ownership share of the entity.
Unrealised losses are eliminated in the same
way as unrealised gains to the extent that
impairment has not taken place.
The accounting items of subsidiaries are
included in full in the consolidated financial
statements. Non-controlling interests’ share of
subsidiaries’ profit/loss for the year and of
equity is included in the Group’s profit/loss and
equity but is disclosed separately. Entities
acquired or established during the year are
recognised in the consolidated financial
statements from the date of acquisition or
formation. Entities disposed of or discontinued
are recognised in the consolidated income
statement until the date of disposal or
discontinuation. The comparative figures are
not restated.
FOREIGN CURRENCY TRANSLATION
A functional currency is determined for each of
the reporting entities in the Group. The
functional currency is the primary currency used
for the reporting entity’s operations.
Transactions denominated in currencies other
than the functional currency are considered
transactions denominated in foreign currencies.
On initial recognition, transactions denominated
in foreign currencies are translated to the
functional currency at the exchange rates at the
transaction date. Foreign exchange differences
arising between the exchange rates at the
transaction date and at the date of payment
are recognised as financial income or expenses.
Receivables, payables and other monetary
items denominated in foreign currencies are
translated at the exchange rates at the
reporting date. The difference between the
exchange rates at the reporting date and at the
date at which the receivable or payable arose
or the exchange rate in the latest consolidated
financial statements is recognised as financial
income or expenses.
On recognition of entities with a functional
currency other than the presentation currency,
the income statement and statement of cash
flows are translated at the exchange rates at
the transaction date, and the statement of
financial position items are translated at the
exchange rates at the reporting date. Foreign
exchange differences arising on translation of
the opening balance of equity, and of the
income statement on the reporting date, are
recognised in other comprehensive income and
attributed to a separate translation reserve in
equity. Foreign exchange differences arising on
the translation of the proportionate share of
associates are likewise recognised in other
comprehensive income.
Foreign exchange adjustment of balances with
entities that are considered part of the
investment in the entity is recognised in other
comprehensive income. Correspondingly,
foreign exchange gains and losses on the part
of loans and derivative financial instruments
that are designated as hedges of investments in
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
123
foreign entities, and that effectively hedge
against corresponding foreign exchange gains
and losses on the investment in the entity, are
also recognised in other comprehensive income
and attributed to a separate translation reserve
in equity.
measures are defined and calculated by the
Group and therefore may not be comparable
with other companies’ measures.
The non-IFRS financial measures disclosed in
the Annual Report are:
• Earnings per share, adjusted, and payout
ratio, adjusted
• Organic development
The Danish Finance Society does not
acknowledge use of special items and states
that adjustments of tax should be based on the
marginal tax rate. When calculating financial
measures, the Group uses operating profit
before special items as well as the effective tax
rate for measures adjusted for tax.
Other financial ratios are calculated in
accordance with the Danish Finance Society’s
online guidelines for the calculation of financial
ratios, “Recommendations and Financial
Ratios”, unless specifically stated.
When the gain or loss from a complete or
partial disposal of an entity is recognised, the
share of the cumulative exchange differences
recognised in other comprehensive income is
recognised in the income statement. The same
approach is adopted on repayment of balances
that constitute part of the net investment in the
entity.
INCOME STATEMENT
The presentation of the Group’s income
statement is based on the internal reporting
structure, as IFRS Accounting Standards do not
provide a specific disclosure requirement.
Special items are not directly attributable to
ordinary operating activities and are shown
separately in order to facilitate a better
understanding of the Group’s financial
performance.
CASH FLOW
Cash flow is calculated using the indirect
method and is based on operating profit before
special items adjusted for depreciation,
amortisation and impairment losses. Cash flow
cannot be derived directly from the statement
of financial position and income statement.
FINANCIAL RATIOS AND NON-IFRS
FINANCIAL MEASURES
The Group uses certain additional financial
measures to provide management, investors
and investment analysts with additional
measures to evaluate and analyse the
Company’s results. These non-IFRS financial
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
124
The annual report submitted to the Danish
Financial Supervisory Authority (the Officially
Appointed Mechanism) consists of the XHTML
document together with the technical files, all
of which are included in the ZIP file
Carlsberg-2023-12-31-en.zip.
Key definitions
XHTML (eXtensible HyperText Markup
Language) is a text-based language used to
structure and mark up content such as text,
images and hyperlinks in documents that are
displayed in a web browser.
iXBRL tags (or Inline XBRL tags) are hidden
metainformation embedded in the source code
of an XHTML document that enables the
conversion of XHTML-formatted information
into a machine-readable XBRL data record
using appropriate software.
A financial reporting taxonomy is an electronic
dictionary of business reporting elements used
to report business data. A taxonomy element is
an element defined in a taxonomy that is used
for the machine-readable labelling of
information in an XBRL data record.
SECTION 9.2 (CONTINUED)
GENERAL
ACCOUNTING
POLICIES
9.2.1 REPORTING UNDER THE ESEF
REGULATION
The Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic
Format (ESEF Regulation) has introduced a
single electronic reporting format for the
annual financial reports of issuers with
securities listed on EU-regulated markets.
The combination of XHTML format and iXBRL
tags enables the annual financial reports to be
read by both humans and machines, thus
enhancing accessibility, analysis and
comparability of the information included in the
annual financial reports.
The Group’s iXBRL tags have been prepared in
accordance with the ESEF taxonomy, which is
included in the ESEF Regulation and has been
developed based on the IFRS taxonomy
published by the IFRS Foundation.
The line items in the consolidated financial
statements are tagged to elements in the ESEF
taxonomy. For financial line items that are not
directly defined in the ESEF taxonomy, an
extension to the taxonomy has been created.
Extensions are anchored to elements in the
ESEF taxonomy, except for extensions that are
subtotals.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
125
SECTION 9.2 (CONTINUED)
GENERAL
ACCOUNTING
POLICIES
Glossary and calculation of key figures and financial ratios disclosed in the Annual Report
FINANCIAL RATIOS
Gross margin
EBITDA margin1
Operating margin
Gross profit as a percentage of revenue.
Operating profit before depreciation, amortisation and impairment losses as a
percentage of revenue.
Operating profit before special items1 as a percentage of revenue.
Payout ratio
Payout ratio, adjusted
Proposed dividend for the year as a percentage of consolidated profit,
excluding non-controlling interests.
Proposed dividend for the year on number of shares at year-end as a
percentage of consolidated profit, adjusted for special items after tax1,
excluding non-controlling interests.
STOCK MARKET RATIOS (CONTINUED)
Return on invested capital (ROIC)
Return on invested capital excluding
goodwill (ROIC excl. goodwill)
Operating profit before special items1 adjusted for tax as a percentage of
average invested capital2 calculated as a 12-month rolling average (MAT).
Operating profit before special items1 adjusted for tax as a percentage of
average invested capital2 excluding goodwill calculated as a 12-month rolling
average (MAT).
Effective tax rate1
NIBD/EBITDA1
Income tax as a percentage of profit before tax.
Net interest-bearing debt3 divided by operating profit before depreciation,
amortisation and impairment losses.
STOCK MARKET RATIOS
Earnings per share (EPS)
Earnings per share, diluted (EPS-D)
Earnings per share, adjusted (EPS-A)
EPS-A, continuing operations
Profit for the period, excluding non-controlling interests, divided by the average
number of shares.
Profit for the period, excluding non-controlling interests, divided by the average
number of shares, fully diluted for share options and performance shares in the
money.
Profit for the period adjusted for special items after tax1, excluding non-
controlling interests and special items after tax in the discontinued operations,
divided by the average number of shares.
Profit for the period adjusted for special items after tax1, excluding non-
controlling interests and loss from the discontinued operations, divided by the
average number of shares.
GLOSSARY
EBITDA1
Free cash flow4
Leverage ratio1
NCI
OCI
Off-trade
On-trade
Operating profit
Organic development1
Free cash flow per share (FCFPS)1
Free cash flow⁴ divided by the average number of shares, fully diluted for share
options and performance shares in the money.
Volumes1
Market capitalisation
Number of shares at year-end multiplied by the share price.
Average number of issued shares
Number of issued shares as an average for the year.
Average number of shares
Number of issued shares, excluding treasury shares, as an average for the year.
Number of shares at year-end
Total number of issued shares, excluding treasury shares, at year-end.
Operating profit before depreciation, amortisation and impairment losses.
Cash flow from operating activities less cash flow from investing activities.
NIBD/EBITDA.
Non-controlling interests.
Other comprehensive income.
Sale of beverages for consumption off the premises (e.g. retailers).
Sale of beverages for consumption on the premises (e.g. restaurants, hotels
and bars).
Operating profit before special items1.
Measure of growth excluding the impact of acquisitions, disposals and foreign
exchange from year-on-year comparisons.
The Group’s sale of beverages in consolidated entities and sale of the Group’s
products under licence agreements.
1 This key figure, ratio or elements thereof are not defined or deviate from the definitions of the Danish Finance Society.
² The calculation of invested capital is specified in section 2.1.
³ The calculation of net interest-bearing debt is specified in section 4.3.
4 The calculation of free cash flow is specified in the statement of cash flows.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
126
SECTION 9.4
NEW LEGISLATION
NEW AND AMENDED IFRS ACCOUNTING
STANDARDS
The following Amendments to IFRS Accounting
Standards became effective as of 1 January
2024:
• Amendments to IAS 1 “Presentation of
Financial Statements: Classification of
Liabilities as Current or Non-current” and
“Classification of Liabilities as Current or Non-
current - Deferral of Effective Date” and
“Non-current Liabilities with Covenants”
• Amendment to IFRS 16 “Leases: Lease
Liability in a Sale and Leaseback”
These Amendments are not expected to have
any significant impact on the financials or the
Group’s accounting policies, as they cover areas
that are not material and/or relevant for the
Group.
NEW AND AMENDED IFRS ACCOUNTING
STANDARDS AND INTERPRETATIONS NOT YET
ADOPTED BY THE EU
The following Amendments, which will become
effective in future years, have been issued but
not yet adopted by the EU:
• Amendment to IAS 21 “The Effects of Changes
in Foreign Exchange Rates: Lack of
Exchangeability”
• Supplier Finance Arrangements: Amendment
to IAS 7 “Statement of Cash Flows” and IFRS
7 “Financial Instruments: Disclosures”.
The Amendments are not mandatory for the
financial reporting for 2023. The Group expects
to adopt the Amendments when they become
mandatory.
SECTION 9.3
CHANGES IN
ACCOUNTING
POLICIES
CHANGED ACCOUNTING POLICIES
AND CLASSIFICATION IN THE ANNUAL
REPORT 2023
The Annual Report 2023 has been prepared
using the same accounting policies for
recognition and measurement as those applied
to the consolidated financial statements for
2022, except for the following Amendments
that were adopted as of 1 January 2023:
• Amendment to IAS 1 “Presentation of
Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting
Policies”
• Amendment to IAS 8 “Accounting Policies,
Changes in Accounting Estimates and Errors:
Definition of Accounting Estimates”
• Amendments to IAS 12 “Income Taxes:
Deferred Tax related to Assets and Liabilities
arising from a Single Transaction”
• Amendments to IAS 12 “Income Taxes:
International Tax Reform - Pillar Two Model
Rules”
• Amendments to IFRS 17 “Insurance Contracts”
and “Initial application of IFRS 17" and IFRS 9
“Comparative Information”
These Amendments cover areas that are not
material and/or relevant for the Group.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
127
SECTION 9.5
NEW SEGMENTATION
2024
The regional structure of the Group changed as
of 1 January 2024, with the aim of rebalancing
the regions in terms of size and number of
business units.
Effect of the new segmentation
As a result of the new segmentation, the
entities in India and Nepal will move from the
Asia region to Central & Eastern Europe. At the
same time, Carlsberg Shared Services will move
from Not allocated to Western Europe.
Central & Eastern Europe will then be renamed
Central & Eastern Europe and India to better
reflect its new composition.
IFRS 8 requires that an entity discloses
information about its operating segments,
including profit and loss for each reportable
segment. These segment disclosures should
follow the “management approach”, meaning
they should be the same segments as are
regularly reported to management.
The disclosure in the Annual Report follows the
same regional segmentation as was used in the
internal reporting to the Executive Committee
throughout 2023.
As the management structure was unchanged
during 2023, the segmentation used in the
Annual Report 2023 continues without any
changes compared with 2022.
The segmentation changed as of 1 January
2024, when the new management structure
took effect. To provide transparency, it has
been decided to disclose the effect of the new
segmentation had it become effective at 1
January 2023 and as it will be disclosed in the
comparative figures for 2023 in the Annual
Report 2024.
New segmentation
DKK million
Revenue
Total cost
Share of profit after tax of associates
Operating profit before special items
Operating margin
Invested capital
Invested capital excl. goodwill
Acquisition of property, plant and equipment and
intangible assets
Amortisation and depreciation
Impairment losses
Return on invested capital (ROIC)
ROIC excl. goodwill
Reported
Restated
Western
Europe
37,317
-32,643
307
4,981
13.3%
34,712
14,232
1,533
1,859
338
11.4%
27.0%
Central &
Eastern
Europe
12,959
-10,756
21
2,224
17.2%
7,675
4,236
682
669
127
23.2%
40.9%
Not
allocated
21
-1,287
-
-1,266
-328
-328
177
88
40
-
-
Asia
23,288
-18,329
249
5,208
22.4%
18,293
3,897
1,841
1,363
-100
21.9%
110.2%
Western
Europe
37,317
-32,649
307
4,975
13.3%
34,670
14,190
1,534
1,860
338
11.4%
27.0%
Central &
Eastern
Europe and
India
15,467
-12,842
221
2,846
18.4%
9,992
6,357
720
744
127
22.9%
35.4%
Asia
20,780
-16,243
49
4,586
22.1%
15,976
1,776
1,803
1,288
-100
21.9%
228.1%
2023
Not
allocated
21
-1,281
-
-1,260
-
-286
-286
176
87
40
-
-
SECTION 9.5 (CONTINUED)
NEW SEGMENTATION
2024
New segmentation
Beer (million hl)
Western Europe
Asia
Central & Eastern Europe and India
Total
Other beverages (million hl)
Western Europe
Asia
Central & Eastern Europe and India
Total
Total beverages (million hl)
Western Europe
Asia
Central & Eastern Europe and India
Total
Revenue (DKK million)
Western Europe
Asia
Central & Eastern Europe and India
Not allocated
Total
CARLSBERG GROUP ANNUAL REPORT 2023 PART OF MANAGEMENT REVIEW - NOT AUDITED
128
Q1
Q2
Q3
Q4
H1
H2
FY
Restated 2023
5.9
10.7
6.5
23.1
3.2
1.6
0.7
5.5
9.1
12.3
7.2
28.6
8.4
11.3
9.6
29.3
4.1
1.8
1.0
6.9
12.5
13.1
10.6
36.2
7.8
11.3
9.9
29.0
3.7
1.2
1.1
6.0
11.5
12.5
11.0
35.0
6.6
5.8
7.2
19.6
3.7
1.3
0.7
5.7
10.3
7.1
7.9
25.3
14.3
22.0
16.1
52.4
7.3
3.4
1.7
12.4
21.6
25.4
17.8
64.8
14.4
17.1
17.1
48.6
7.4
2.5
1.8
11.7
21.8
19.6
18.9
60.3
28.7
39.1
33.2
101.0
14.7
5.9
3.5
24.1
43.4
45.0
36.7
125.1
7,551
5,791
3,059
4
16,405
10,831
5,993
4,557
2
21,383
10,113
5,572
4,603
6
20,294
8,822
3,424
3,248
9
15,503
18,382
11,784
7,616
6
37,788
18,935
8,996
7,851
15
35,797
37,317
20,780
15,467
21
73,585
SECTION 10
GROUP
COMPANIES
This section lists the subsidiaries and associates in the Group. Parent direct ownership shows the
legal ownership held by the immediate holding company in the Group. Cross-holdings held by fully
owned companies in the Group are aggregated. Consolidated ownership shows the share of the
result of the entity that is attributed to the shareholders of Carlsberg A/S in the consolidated
financial statements.
Carlsberg Breweries A/S
Place of
incorporation
Denmark
Number of
subsidiaries
Note
Parent
direct
ownership
Consolidated
ownership
2
100%
100%
Western Europe
Carlsberg Danmark A/S
Carlsberg Supply Company Danmark A/S
Carlsberg Sweden Holding 2 AB
Carlsberg Sverige AB
Carlsberg Supply Company Sverige AB
Ringnes Norge AS
Ringnes AS
Ringnes Brygghus AS
Solo AS
Ringnes Supply Company AS
Ringnes Farris Eiendom AS
Ringnes Imsdal Eiendom AS
Ringnes Administrasjon Eiendom AS
Ringnes Gjelleråsen Eiendom AS
Oy Sinebrychoff Ab
Sinebrychoff Supply Company Oy
Carlsberg Deutschland Holding GmbH
Carlsberg Deutschland Logistik GmbH
Tuborg Deutschland GmbH
Denmark
Denmark
Sweden
Sweden
Sweden
Norway
Norway
Norway
Norway
Norway
Norway
Norway
Norway
Norway
Finland
Finland
Germany
Germany
Germany
1
100%
100%
100%
100%
100%
100%
100%
100%
91%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
91%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
129
Place of
incorporation
Number of
subsidiaries
Note
Parent
direct
ownership
Consolidated
ownership
Western Europe
Carlsberg Deutschland GmbH
Duckstein GmbH
Holzmarkt Beteiligungsgesellschaft mbH
Holsten-Brauerei AG
Germany
Germany
Germany
Germany
Carlsberg Supply Company Deutschland GmbH
Germany
Carlsberg Supply Company Polska SA
Carlsberg Polska Sp. z o.o.
Carlsberg UK Holdings Limited
Carlsberg Marston's Limited
Carlsberg Marston's Brewing Company Ltd.
Marston's Beer Company Limited
CMBC Supply Limited
LF Brewery Holdings Limited
Emeraude S.A.S.
Kronenbourg S.A.S.
Kronenbourg Supply Company S.A.S.
Kronenbourg Breweries Canada Inc.
Fondation Kronenbourg
S.A.S. Onyx
Feldschlösschen Getränke Holding AG
Feldschlösschen Getränke AG
Schlossgarten Gastronomie AG
Poland
Poland
UK
UK
UK
UK
UK
UK
France
France
France
Canada
France
France
Switzerland
Switzerland
Switzerland
6
3
1
7
1
3
100%
100%
100%
100%
100%
100%
100%
100%
60%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
60%
60%
60%
60%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Western Europe
SB Swiss Beverage AG
Feldschlösschen Supply Company AG
Carlsberg Supply Company AG
Nya Carnegiebryggeriet AB
E.C. Dahls Bryggeri AS
Monster the Cat GmbH
Grimbergen Abbey Brewery
Zatecky Pivovar spol. S.r.o.
Asia
Carlsberg Asia Pte Ltd
Place of
incorporation
Number of
subsidiaries
Note
Parent
direct
ownership
Consolidated
ownership
Asia
Switzerland
Switzerland
Switzerland
Sweden
Norway
Switzerland
Belgium
Czechia
Place of
incorporation
Singapore
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Number of
subsidiaries
Note
Parent
direct
ownership
Consolidated
ownership
A
B
Carlsberg Brewery Hong Kong Ltd
Hong Kong SAR
Guangzhou Carlsberg Consultancy and
Management Services Co. Ltd
Chongqing Brewery Co., Ltd
Carlsberg Chongqing Breweries Company
Limited
Kunming Huashi Brewery Company
Limited
Carlsberg (China) Breweries and
Trading Company Limited
Carlsberg Brewery (Guangdong) Ltd
Xinjiang Wusu Breweries Co., Ltd
Ningxia Xixia Jianiang Brewery Limited
Beijing Capital Brewing Jinmai Trading
Company Limited
G-Shell Asia Pacific (Beijing) Food
Company Limited
Carlsberg Beer Enterprise Management
(Chongqing) Company Limited
Carlsberg Brewery (Anhui)
Company Ltd
Carlsberg Tianmuhu Brewery
(Jiangsu) Company Ltd
Lao Brewery Co. Ltd
Carlsberg Korea Ltd.
China
China
China
China
China
China
China
China
China
China
China
China
China
Laos
South Korea
3
8
5
100%
100%
100%
60%
51%
100%
100%
99%
100%
70%
100%
100%
100%
75%
100%
61%
100%
100%
100%
100%
60%
79%
79%
79%
79%
79%
56%
79%
79%
79%
60%
79%
61%
100%
Carlsberg Brewery Malaysia Berhad
Carlsberg Marketing Sdn BHD
Euro Distributors Sdn BHD
Carlsberg Singapore Pte Ltd
Maybev Pte Ltd
Carlsberg South Asia Pte Ltd
South Asian Breweries Pte. Ltd
Carlsberg India Pvt. Ltd
Gorkha Brewery Pvt. Ltd
G.B. Marketing Pvt Ltd
Carlsberg Vietnam Trading Co. Ltd
Carlsberg Vietnam Breweries Ltd
Paduak Holding Pte. Ltd
Carlsberg Supply Company Asia Ltd
Caretech Limited
Cambrew Limited
Cambrew Properties Ltd
Angkor Beverage Co Ltd
CB Distribution Co., Ltd
Central & Eastern Europe
Carlsberg Azerbaijan LLC
Baku Piva JSC
Carlsberg Kazakhstan Ltd
PJSC Carlsberg Ukraine
A Listed company.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
130
Note
A
C
D
D
D
D, E, F
D, F
Place of
incorporation
Malaysia
Malaysia
Malaysia
Singapore
Singapore
Singapore
Singapore
India
Nepal
Nepal
Vietnam
Vietnam
Singapore
Hong Kong SAR
Hong Kong SAR
Cambodia
Cambodia
Cambodia
Thailand
Number of
subsidiaries
Parent
direct
ownership
Consolidated
ownership
51%
100%
100%
100%
51%
67%
100%
100%
90%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2
51%
51%
51%
51%
26%
100%
100%
100%
90%
90%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Place of
incorporation
Note
Number of
subsidiaries
Parent
direct
ownership
Consolidated
ownership
Azerbaijan
Azerbaijan
Kazakhstan
Ukraine
100%
91%
90%
100%
1
100%
91%
90%
100%
B Carlsberg Chongqing Breweries Company Limited is owned by Chongqing Brewery Co., Ltd (51%) and Guangzhou
Carlsberg Consultancy and Management Services Co Ltd (49%), resulting in a consolidated ownership of 79%.
C Maybev Pte Ltd is owned by Carlsberg Singapore Pte Ltd (51%), which is owned by Carlsberg Brewery Malaysia
Berhad (51%), resulting in a consolidated ownership of 26%.
D The Group owns 67% of Carlsberg South Asia Pte Ltd, which is the holding company of South Asian Breweries
Pte. Ltd, Carlsberg India Pvt. Ltd and Gorkha Brewery Pvt. Ltd (Nepal). The consolidation percentage of Carlsberg
South Asia Pte Ltd is 100% due to a written put option.
E The Group has the legal and contractual rights of a majority shareholder in Gorkha Brewery Pvt. Ltd, but does not
consolidate the company and its subsidiary for accounting purposes.
F Company not audited by PwC.
Central & Eastern Europe
Baltic Beverages Holding AB
Carlsberg Serbia Ltd
Carlsberg BH d.o.o.
Carlsberg Montenegro d.o.o.
Carlsberg Croatia d.o.o.
Carlsberg Bulgaria AD
OJSC Brewery Alivaria
Vista BY Co LLC
Carlsberg Italia S.p.A.
Carlsberg Horeca Srl
T&C Italia Srl
Olympic Brewery SA
Hellenic Beverage Company SA
Carlsberg Hungary Kft.
Saku Ölletehase AS
Aldaris JSC
Svyturys-Utenos Alus UAB
CTDD Beer Imports Ltd
Carlsberg Canada Inc.
Waterloo Brewing Ltd.
Carlsberg USA Inc.
Not allocated
Carlsberg Finans A/S
Carlsberg International A/S
Home of Carlsberg A/S
Carlsberg Invest A/S
Carlsberg Integrated Information Technology A/S
Carlsberg Captive Insurance Company A/S
Carlsberg Central Office A/S
Traitomic A/S
Carlsberg Shared Services Sp. z o.o.
CARLSBERG GROUP ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
131
Place of
incorporation
Note
Number of
subsidiaries
Parent
direct
ownership
Consolidated
ownership
Associates
Place of
incorporation
Note
Number of
subsidiaries
Parent
direct
ownership
Consolidated
ownership
Sweden
Serbia
Bosnia and
Herzegovina
Montenegro
Croatia
Bulgaria
Belarus
Belarus
Italy
Italy
Italy
Greece
Greece
Hungary
Estonia
Latvia
Lithuania
Canada
Canada
Canada
USA
F, G
H
I
100%
100%
100%
100%
100%
100%
78%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
89%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
100%
100%
100%
Udviklingsselskabet Carlsberg Byen P/S
Sinergie Proattive Srl
Knopp Oy
Viacer S.G.P.S., Lda
Super Bock Group, S.G.P.S., S.A.
Denmark
Italy
Finland
Portugal
Portugal
Serviced Dispense Equipment (Holdings) Limited
UK
Nuuk Imeq A/S
Chongqing Jiawei Beer Co. Ltd
Lanzhou Huanghe Jianiang Brewery Company
Limited
Qinghai Huanghe Jianiang Brewery Company Ltd
Jiuquan West Brewery Company Limited
Tianshui Huanghe Jianiang Brewery Company Ltd
Lion Brewery (Ceylon) PLC
Hanoi Beer Alcohol and Beverage Joint Stock
Corporation
Carlsberg Distributors Taiwan Limited
NCC Crowns Private Limited
Bottlers Nepal Limited
Myanmar Carlsberg Co. Ltd
Greenland
China
China
China
China
China
Sri Lanka
Vietnam
Taiwan
India
Nepal
Myanmar
F
J
J
F
A, F, K
F
F
62
10
2
1
1
1
25%
36%
50%
29%
56%
33%
32%
33%
50%
50%
50%
50%
25%
17%
50%
33%
22%
61%
25%
36%
50%
29%
60%
20%
32%
26%
50%
50%
50%
50%
13%
17%
50%
33%
20%
61%
Place of
incorporation
Note
Number of
subsidiaries
Parent
direct
ownership
Consolidated
ownership
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Poland
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Not consolidated companies
Baltika Breweries LLC
Hoppy Union LLC
Place of
incorporation
Russia
Russia
Note
F, H, L
F, H, L
Number of
subsidiaries
Parent
ownership
Consolidated
ownership
3
1
100%
100%
0%
0%
G Consolidated ownership is higher than the legal ownership due to written put options.
H Company owned by Carlsberg Sverige AB.
I In January 2024 Waterloo Brewing Ltd. was merged into Carlsberg Canada Inc.
J Viacer S.G.P.S (Viacer) is the controlling shareholder of Super Bock Group, S.G.P.S. (Super Bock) with a 56%
shareholding, with Carlsberg Breweries A/S owning the remaining 44%. In addition, Carlsberg Breweries A/S has a direct
ownership share of 29% in Viacer without exercising control. Therefore, both Viacer and Super Bock are considered
associates of the Group. The Group's direct and indirect ownership of Super Bock totals 60%.
K Lion Brewery (Ceylon) PLC is owned by Carlsberg Brewery Malaysia Berhad (25%). Carlsberg owns 51% of Carlsberg
Brewery Malaysia Berhad, resulting in 13% of the result being attributed to the shareholders in Carlsberg A/S.
L Deconsolidated as of July 2023.
Non-beverage
Barley 1 A/S
Carlsberg Ejendomme Holding A/S
Place of
incorporation
Note
Number of
subsidiaries
Denmark
Denmark
Parent
direct
ownership
100%
100%
Consolidated
ownership
100%
100%
Parent Company financial statements
PARENT COMPANY FINANCIAL STATEMENTS
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
132
PARENT COMPANY FINANCIAL
STATEMENTS
Income statement ................................ 133
Statement of comprehensive
income ...................................................... 133
Statement of financial position ...... 134
Statement of changes in equity ..... 135
Statement of cash flows ................... 135
Notes ......................................................... 136
SECTION 1
SUBSIDIARIES AND RELATED PARTIES
1.1 Investments in subsidiaries ....................... 136
1.2 Related parties ............................................. 136
SECTION 2
CAPITAL STRUCTURE
2.1 Financial items ............................................. 137
2.2 Net interest-bearing debt ......................... 137
2.3 Share capital ................................................. 138
SECTION 3
STAFF COSTS AND REMUNERATION
3.1 Staff costs and remuneration .................. 139
3.2 Retirement benefit obligations ................ 139
SECTION 4
OTHER DISCLOSURE REQUIREMENTS
4.1 Other operating activities, net ................. 140
4.2 Cash flow ....................................................... 140
4.3 Provisions ....................................................... 140
4.4 Asset base and leases ............................... 140
4.5 Fees to auditors ........................................... 140
4.6 Tax ................................................................... 141
4.7 Contingent liabilities and other
commitments ............................................... 142
4.8 Events after the reporting period ........... 142
SECTION 5
GENERAL ACCOUNTING POLICIES
5
General accounting policies ..................... 142
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 133
INCOME STATEMENT
STATEMENT OF COMPREHENSIVE INCOME
DKK million
Administrative expenses
Other operating activities, net
Operating profit before special items
Special items, net
Financial income
Financial expenses
Profit before tax
Income tax
Profit for the period
Attributable to
Dividend to shareholders
Reserves
Profit for the period
Section
2023
2022
DKK million
Profit for the period
Other comprehensive income
Retirement benefit obligations
Income tax
Items that will not be reclassified to the income statement
Other comprehensive income
Total comprehensive income
4.1
2.1
2.1
4.6
-32
-29
-61
-15
3,713
-42
3,595
123
3,718
3,709
9
3,718
-41
195
154
-15
3,592
-17
3,714
109
3,823
3,830
-7
3,823
Section
2023
3,718
2022
3,823
3.2
4.6
-2
1
-1
-1
-8
2
-6
-6
3,717
3,817
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 134
STATEMENT OF FINANCIAL POSITION
DKK million
ASSETS
Non-current assets
Property, plant and equipment
Investments in subsidiaries
Receivables
Tax assets
Total non-current assets
Current assets
Receivables
Tax receivables
Other receivables
Total current assets
Total assets
Section
31 Dec. 2023
31 Dec. 2022
DKK million
Section
31 Dec. 2023
31 Dec. 2022
4.4
1.1
4.6
1.2
EQUITY AND LIABILITIES
222
27,271
341
37
Equity
166
Share capital
30,080
Retained earnings
Total equity
327
11
27,871
30,584
Non-current liabilities
208
137
254
599
426
6
431
863
Retirement benefit obligations
Provisions
Total non-current liabilities
Current liabilities
Trade payables
28,470
31,447
Provisions
Other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
2.3
3.2
4.3
4.3
2,747
25,419
28,166
2,837
28,351
31,188
30
10
40
100
23
141
264
304
32
21
53
49
25
132
206
259
28,470
31,447
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 135
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
DKK million
Section
Shareholders in Carlsberg A/S
DKK million
Section
2023
2022
2023
Equity at 1 January
Profit for the period
Other comprehensive income
Total comprehensive income for the period
Cancellation of treasury shares
Share-based payments
Share-based payments to employees in subsidiaries
Share buy-back
Dividends paid to shareholders
Total changes in equity
Equity at 31 December
2022
Equity at 1 January
Profit for the period
Other comprehensive income
Total comprehensive income for the period
Cancellation of treasury shares
Share-based payments
Share-based payments to employees in subsidiaries
Share buy-back
Dividends paid to shareholders
Total changes in equity
Equity at 31 December
Share
capital
2,837
-
-
-90
-
-
-
-
-90
2,747
2,905
-
-
-68
-
-
-
-
-68
2,837
3.1
2.3
2.3
3.1
2.3
2.3
Retained
earnings
Operating profit before special items
Total equity
Depreciation and amortisation
28,351
3,718
-1
3,717
90
1
155
-3,200
-3,695
-2,932
25,419
32,189
3,823
-6
3,817
68
-4
70
-4,400
-3,389
-3,838
28,351
31,188
3,718
Operating profit before depreciation and amortisation
Other non-cash items
-1
Change in working capital
3,717
Interest etc. received
-
1
Interest etc. paid
Income tax paid
Cash flow from operating activities
Acquisition of property, plant and equipment and intangible assets
Disposal of property, plant and equipment and intangible assets
Total operational investments
Acquisition and disposal of subsidiaries, net
Dividends from subsidiaries
Capital reductions in subsidiaries
Total financial investments
Cash flow from investing activities
Free cash flow
Shareholders in Carlsberg A/S
External financing
Cash flow from financing activities
Net cash flow
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
155
-3,200
-3,695
-3,022
28,166
35,094
3,823
-6
3,817
-
-4
70
-4,400
-3,389
-3,906
31,188
4.4
1.2
1.2
2.3
2.2
-61
16
-45
-20
181
18
-40
-34
60
-72
-
-72
-
3,695
3,000
6,695
6,623
6,683
-6,895
212
-6,683
-
-
-
154
17
171
-219
119
4
-16
99
158
-18
354
336
-25
3,582
4,535
8,092
8,428
8,586
-7,789
-797
-8,586
-
-
-
SECTION 1
SUBSIDIARIES AND
RELATED PARTIES
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 136
SECTION 1.1
INVESTMENTS IN
SUBSIDIARIES
Share-based payments to employees in
subsidiaries comprise exercised as well as
outstanding share-based incentive instruments.
Investments in subsidiaries
DKK million
2023
2022
ACCOUNTING ESTIMATES
AND JUDGEMENTS
Indications of impairment of investments in
subsidiaries are assessed annually by management.
Impairment tests are performed by applying the same
principles as the tests for impairment of goodwill in
the Group, cf. section 2.2 in the consolidated financial
statements.
It is management’s assessment that no indications of
impairment existed at year-end 2023. Impairment
tests have therefore not been carried out for
subsidiaries.
Cost
Cost at 1 January
Capital reductions
Share-based payments
to employees, net
Cost at 31 December
Carrying amount at
31 December
30,080
-3,000
191
27,271
34,426
-4,535
189
30,080
ACCOUNTING
POLICIES
Dividends on investments in subsidiaries are
recognised in the income statement of the Parent
Company in the financial year in which the dividend is
declared.
27,271
30,080
Investments in subsidiaries are measured at the lower
of cost and recoverable amount.
Please see section 10 in the consolidated financial
statements for a list of companies in the Carlsberg Group.
Share-based payments granted to employees of the
Company’s subsidiaries and the recharge of expenses
to the subsidiaries in connection with the employees’
exercise of share-based awards are recognised as
contributions to and reductions of the investment in
the subsidiaries respectively.
SECTION 1.2
RELATED PARTIES
The Carlsberg Foundation, H.C. Andersens
Boulevard 35, 1553 Copenhagen V, Denmark,
exercises control over Carlsberg A/S. The
Foundation holds 29.4% of the shares and
76.7% of the voting power in Carlsberg A/S,
excluding treasury shares.
The following transactions took place between
the Carlsberg Foundation and the Carlsberg
Group in 2023:
• The Carlsberg Foundation received a dividend
from Carlsberg A/S and participated pro rata
in the Carlsberg A/S share buy-back.
• Carlsberg A/S received statutory funding and
grants for research and development.
• The Carlsberg Foundation contributed to
Home of Carlsberg A/S to support the
rebuilding of the Carlsberg Visitor Centre.
• Home of Carlsberg A/S, a 100%-owned
subsidiary of the Carlsberg Group, hosted and
administered events at the Carlsberg
Academy, which is owned by the Carlsberg
Foundation.
• Carlsberg A/S leased parking spaces from the
Carlsberg Foundation.
• Carlsberg Breweries A/S leased storage
facilities in the researcher apartments in
Carlsberg Byen.
• The Group delivered beer and soft drinks to
the Carlsberg Foundation.
These transactions are described in further
detail in sections 4.4 and 8.3 of the
consolidated financial statements.
It is estimated that the benefit for the Carlsberg
Group corresponds to the value of the services
provided to the Carlsberg Foundation, which in
turn corresponds to what each party would
have had to pay to have the same deliverables
provided by external parties.
OTHER RELATED PARTIES
Related parties also comprise Carlsberg A/S’
Supervisory Board and Executive Board, their
close family members and companies in which
these persons have significant influence. During
the year, there were no transactions between
these parties and the Group, except for
remuneration as disclosed in section 3.
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 137
SECTION 2
CAPITAL
STRUCTURE
SECTION 1.2 (CONTINUED)
RELATED PARTIES
SECTION 2.1
FINANCIAL ITEMS
No losses on loans to or receivables from
subsidiaries and associates were recognised or
provided for in either 2023 or 2022.
Interest income relates to interest from loans to
subsidiaries, whereas interest expenses relate to
borrowings incurred and repaid throughout the
year.
Transactions with subsidiaries
DKK million
2023
2022
Financial items recognised
in the income statement
SECTION 2.2
NET INTEREST-
BEARING DEBT
DKK million
Loans to subsidiaries
Net interest-bearing debt
Changes in net interest-bearing debt
Net interest-bearing debt at 1 January
Other operating activities,
net
Interest income
Interest expenses
Dividends received
Capital reductions
Recharge of share-based
payments
Loans
Receivables
Trade payables
Other payables
40
18
-36
3,695
3,000
126
503
43
-74
-1
273
4
-11
3,582
4,535
92
716
35
-8
-6
The fair value of receivables from subsidiaries
corresponds to the carrying amount in all
material respects.
DKK million
2023
2022
Cash flow from operating activities, excluding interest-bearing part
Financial income
Interest income
Dividends from
subsidiaries
Other
Total
Financial expenses
Interest expenses
Other
Total
18
3,695
-
3,713
-36
-6
-42
Cash flow from investing activities
Share buy-back
4
Dividends to shareholders
Other
Total change
Net interest-bearing debt at 31 December
3,582
6
3,592
-11
-6
-17
Financial items, net
3,671
3,575
No financial items were recognised in other
comprehensive income. The average effective
interest rate on loans to subsidiaries was 3.99%
(2022: 0.61%) and on borrowings from
subsidiaries 4.25% (2022: 0.68%).
2023
-503
-503
-716
-60
-6,623
3,200
3,695
1
213
-503
2022
-716
-716
86
-158
-8,428
4,400
3,389
-5
-802
-716
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 138
SHARE BUY-BACK AND TREASURY SHARES
On 7 February 2023, the Company announced
its intention to continue the share buy-back
programme executed as quarterly programmes.
In 2023, a total of 3,338,514 B shares worth
DKK 3.2bn were repurchased. The 2023
programme ended with the fourth quarterly
programme, which was finalised on 26 January
2024. Under this programme the Company has
repurchased a total of 3,160,923 B shares at a
total purchase price of DKK 3.0bn over a 12-
month period.
According to the authorisation of the Annual
General Meeting, the Supervisory Board may,
in the period until 13 March 2027, allow the
Company to acquire treasury shares up to a
total holding of 10% of the nominal share
capital at a price quoted on Nasdaq
Copenhagen at the time of acquisition with a
deviation of up to 10%. The permitted holding
of treasury shares covers those acquired in
share buy-back programmes. The Company
holds no class A shares.
Transactions with shareholders
in Carlsberg A/S
2023
2022
Dividends to shareholders
-3,695
-3,389
Acquisition of treasury
shares
Total
-3,200
-6,895
-4,400
-7,789
In the 2023 financial year, the Company
acquired class B treasury shares of a nominal
amount of DKK 67m (2022: DKK 95m) at an
average price per share of DKK 959 (2022: DKK
926). Class B treasury shares are acquired and
disposed of as part of the share buy-back
programme and to facilitate settlement of the
share-based incentive programmes.
At 31 December 2023, the fair value of treasury
shares amounted to DKK 2,746m (2022: DKK
4,169m). The holdings of treasury shares are
specified in section 4.4 in the consolidated
financial statements.
SECTION 2.3
SHARE CAPITAL
SHARE CAPITAL
At the Annual General Meeting on 13 March
2023, it was decided to reduce the share capital
of Carlsberg A/S by a nominal amount of DKK
90,000,000 to a nominal amount of DKK
2,747,136,120 by cancelling 4,500,000 of the B
shares held by the Company, each with a
nominal value of DKK 20. The cancellation was
completed on 11 April 2023. These shares had
been repurchased as part of the Company’s
share buy-back programme.
At the Annual General Meeting on 11 March
2024, the Supervisory Board will recommend
that 3,100,000 treasury shares not used for the
hedging of the incentive programme be
cancelled.
DIVIDENDS
The proposed dividend of DKK 27.00 per share
(2022: DKK 27.00 per share), amounting to
DKK 3,709m (2022: DKK 3,830m), has
been included in retained earnings at
31 December 2023.
Dividends to be paid out in 2024 for 2023, net
of dividends on treasury shares held at 31
December 2023, will amount to DKK 3,621m
(paid out in 2023 for 2022: DKK 3,708m).
Dividends paid out in 2023 for 2022, net of
dividends on treasury shares, amounted to DKK
3,695m (paid out in 2022 for 2021: DKK
3,389m). Dividends paid out to shareholders in
Carlsberg A/S do not impact taxable income in
Carlsberg A/S.
Share capital
1 January 2022
Cancellation of
treasury shares
Class A shares
Class B shares
Total share capital
Shares of
DKK 20
Nominal
value,
DKK ’000
Shares of
DKK 20
Nominal
value,
DKK ’000
Shares of
DKK 20
Nominal
value,
DKK ’000
33,699,252
673,985
111,557,554
2,231,151
145,256,806
2,905,136
-
-
-3,400,000
-68,000
-3,400,000
-68,000
31 December 2022
33,699,252
673,985
108,157,554
2,163,151
141,856,806
2,837,136
Cancellation of
treasury shares
-
-
-4,500,000
-90,000
-4,500,000
-90,000
31 December 2023
33,699,252
673,985
103,657,554
2,073,151
137,356,806
2,747,136
A shares carry 20 votes per DKK 20 share. B shares carry two votes per DKK 20 share. A preferential right to an 8%
non-cumulative dividend is attached to B shares. Apart from votes and dividends, all shares rank equally.
SECTION 3
STAFF COSTS AND
REMUNERATION
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 139
SECTION 3.1
STAFF COSTS AND
REMUNERATION
The remuneration of the Supervisory Board, the
executive directors and key management
personnel is described in detail in the
Remuneration Report.
In 2023, the Supervisory Board received
total remuneration of DKK 10.31m (2022:
DKK 10.36m), comprising fixed salary only.
SHARE-BASED INCENTIVE PROGRAMMES
The executive directors in the Parent Company
are the same as for the Carlsberg Group. Please
refer to section 7.3 in the consolidated financial
statements for share-based incentive
programmes for the executive directors.
PERFORMANCE SHARES
Besides the executive directors, one employee
in the Parent Company participates in the
Group’s performance share programmes as
described in section 7.3 in the consolidated
financial statements. Refunds etc. between
Carlsberg A/S and its subsidiaries are
recognised directly in equity.
Staff costs and remuneration
DKK million
Salaries and other remuneration
Retirement benefit costs - defined contribution plans
Share-based payments
Total
Staff costs are included in the following items in the income statement
Administrative expenses
Other operating activities, net
Total staff costs recognised by the Parent Company
Staff costs recognised by other Group companies
Total
The Company had an average of 88 (2022: 89) full-time employees during the year.
2023
2022
116
6
52
174
2
62
64
110
174
106
6
29
141
3
64
67
74
141
ACCOUNTING
POLICIES
Staff costs are recognised in the financial year in
which the employee renders the related service. The
fair value of share-based incentives, which is expensed
over the vesting period of the programme according
to the service conditions, is recognised in staff costs
and offset directly against equity.
The fair value of share-based incentives granted to
employees in subsidiaries is recognised as investments
in subsidiaries and offset directly against equity.
SECTION 3.2
RETIREMENT
BENEFIT
OBLIGATIONS
Retirement benefit obligations and similar
obligations comprise payments to retired
directors that are not covered by an insurance
company. The plan is unfunded.
The difference between the purchase price and the
selling price for the exercise of share-based incentives
is settled between Carlsberg A/S and the individual
subsidiary and offset directly against investments in
subsidiaries.
Total obligations amounted to DKK 30m (2022:
DKK 32m) and include actuarial losses of DKK
2m (2022: DKK 8m) and benefits paid in the
year of DKK 4m (2022: DKK 3m).
The difference between the fair value of the Parent
Company’s equity instruments and the exercise price
of outstanding share-based incentives is recognised as
a receivable and offset directly against investments in
subsidiaries.
Of the expected payment obligation, DKK 4m is
due within one year, DKK 16m between one
and five years and DKK 10m after more than
five years from the reporting date.
Share-based incentives granted to the Parent
Company’s own employees are recognised and
measured in accordance with the accounting policies
used by the Group.
The underlying actuarial assumptions are based
on local economic and labour market
conditions. The discount rate was 0.5% (2022:
0.5%). The rate of increase in future retirement
benefit obligations in 2022 and in 2023 was
0%.
Retirement benefit obligations had no impact
on the income statement in either 2022 or
2023. DKK -2m (2022: DKK -8m) was
recognised in other comprehensive income.
SECTION 4
OTHER DISCLOSURE
REQUIREMENTS
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 140
SECTION 4.1
OTHER OPERATING
ACTIVITIES, NET
Other operating activities are secondary to the
principal activities of the Group and include
income and expenses relating to rental
properties and research activities.
Other operating activities, net
DKK million
Gain on disposal of
intangible asset
Real estate, net
Research activities,
including the Carlsberg
Research Laboratory, net
Other, net
Total
2023
2022
-
-1
-26
-2
-29
225
-1
-27
-2
195
ACCOUNTING
POLICIES
The funding and grants are recognised in the income
statement in the same period as the activities to
which they relate.
Of total provisions, DKK 23m (2022: DKK 25m)
falls due within one year and DKK 10m (2022:
DKK 21m) between one and five years from the
end of the reporting period.
SECTION 4.2
CASH FLOW
SECTION 4.4
ASSET BASE AND
LEASES
Change in working capital of DKK 181m (2022:
DKK 119m) consists of trade payables and other
liabilities of DKK 65m (2022: DKK 127m) and
retirement benefit obligations and provisions of
DKK 110m (2022: DKK -8m).
Property, plant and equipment totalled DKK
222m (2022: DKK 166m) and comprised land
and buildings of DKK 190m (2022: DKK 122m)
and plant and machinery of DKK 32m (2022:
DKK 44m).
Cash flow from operational investments of DKK
-72m (2022: DKK 336m) comprises acquisition
of buildings.
Depreciation and amortisation of DKK 16m
(2022: DKK 17m) was included in administrative
expenses.
SECTION 4.5
FEES TO AUDITORS
Fees to auditors appointed by the Annual
General Meeting
DKK million
Statutory audit
Assurance engagements
Tax advisory
Other services
Total
2023
2022
0.6
0.1
-
-
0.7
0.3
0.1
-
0.4
0.8
In 2022, gain on disposal of intangible asset
comprises an internal sale of a licence to a
subsidiary in the Carlsberg Group.
SECTION 4.3
PROVISIONS
Research expenses are partially financed
through funding received from the Carlsberg
Foundation for the operation of the Carlsberg
Research Laboratory and other grants.
Provisions primarily comprise warranty
provisions regarding real estate disposed of
and provisions for ongoing disputes.
At 31 December 2023, total provisions
amounted to DKK 33m (2022: DKK 46m).
Provisions amounting to DKK 33m (2022: DKK
6m) were utilised in 2023.
All lease contracts in Carlsberg A/S at 31
December 2023 related to short-term leases
and leases of low-value assets. The lease
expenses recognised in the income statement
amounted to DKK 1m (2022: DKK 1m). Such
contracts comprise the lease of copy and
printing machines, coffee machines, parking
spaces, small IT devices and similar equipment.
The net change in deferred taxes of
DKK 26m primarily comprised a prior-year
adjustment of DKK 24m (2022: DKK 26m).
The total tax for the year recognised in the
income statement comprised an income of DKK
123m (2022: income of DKK 109m), significantly
affected by prior-year adjustments.
The administration company, Carlsberg A/S,
has unlimited and joint legal responsibility with
the other Danish companies under the joint
taxation scheme for withholding taxes on
dividends, interest and royalties.
SECTION 4.6
TAX
Deferred tax assets amounted to DKK 43m
(2022: DKK 18m) and comprised provisions and
retirement benefit obligations of DKK 14m
(2022: DKK 17m), and receivables of DKK 29m
(2022: land and buildings DKK 1m).
The utilisation of tax loss carried forward
depends on future positive taxable income
exceeding the realised deferred tax liabilities.
Unrecognised, non-expiring tax losses
amounted to DKK 139m (2022: DKK 493m).
Deferred tax liabilities amounted to DKK 6m
(2022: DKK 7m) and comprised tax on
property, plant and equipment.
Deferred tax, net, amounted to an asset of DKK
37m (2022: asset of DKK 11m). Of the deferred
tax assets, DKK 0m (2022: DKK 0m) is
expected to be used within one year.
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 141
Reconciliation of tax for the year
DKK million
Calculated tax on profit
Adjustments to tax for prior
years
2023
791
2022
817
-100
-140
Non-deductible expenses
Tax-free dividend and tax-
exempt items
Tax for the year
-
-814
-123
6
-792
-109
ACCOUNTING ESTIMATES
AND JUDGEMENTS
Carlsberg A/S recognises deferred tax assets,
including the tax base of tax loss carryforwards, if
management assesses that these tax assets can be
offset against positive taxable income in the
foreseeable future. This judgement is made annually
and based on budgets and business plans for the
coming years.
ACCOUNTING
POLICIES
Carlsberg A/S is the administration company and
subject to the Danish rules on mandatory joint
taxation of the Carlsberg Group’s Danish companies.
Carlsberg A/S accordingly pays all income taxes to
the tax authorities under the joint taxation scheme.
Danish subsidiaries are included in the joint taxation
from the date when they are included in the
consolidated financial statements and up to the date
when they are excluded from the consolidation. The
jointly taxed Danish companies are taxed under the
on-account tax scheme.
On payment of joint taxation contributions, the
current Danish income tax is allocated between the
Danish jointly taxed companies in proportion to their
taxable income. Companies with tax losses receive
joint taxation contributions from other companies that
have used the tax losses to reduce their own taxable
profit (full absorption). The Parent Company has
applied the exception to recognise and disclose
information about deferred tax in the OECD/EU Pillar
Two Model Rules and their local implementation.
CARLSBERG GROUP ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS 142
SECTION 5
GENERAL
ACCOUNTING POLICIES
SECTION 4.8
EVENTS AFTER THE
REPORTING PERIOD
Apart from the events recognised or disclosed
in the financial statements, no events have
occurred after the reporting date of importance
to the financial statements.
The financial statements of Carlsberg A/S for
2023 have been prepared in accordance with
IFRS Accounting Standards as adopted by the
EU and further requirements in the Danish
Financial Statements Act.
The financial statements are presented in
Danish kroner (DKK), which is the presentation
currency.
The accounting policies for the Parent
Company are the same as for the Group, cf.
section 9 in the consolidated financial
statements and the individual sections.
SIGNIFICANT ACCOUNTING ESTIMATES
AND JUDGEMENTS
In preparing Carlsberg A/S’ financial
statements, management makes various
accounting estimates and judgements that
form the basis of presentation, recognition and
measurement of the Company’s assets and
liabilities.
The estimates and judgements made are based
on historical experience and other factors that
management assesses to be reliable, but that
by their very nature are associated with
uncertainty and unpredictability. These
estimates and judgements may therefore prove
incomplete or incorrect, and unexpected events
or circumstances may arise.
The significant accounting estimates and
judgements made and accounting policies
specific to the Parent Company are presented
in the explanatory notes.
SECTION 4.7
CONTINGENT
LIABILITIES AND
OTHER
COMMITMENTS
Carlsberg A/S has issued guarantees to
subsidiaries in Sweden for pension obligations
of DKK 389m (2022: DKK 357m) and
guarantees for pension obligations in the UK,
cf. section 7.4 in the consolidated financial
statements.
Carlsberg A/S is jointly registered for Danish
VAT and excise duties with Carlsberg Breweries,
Carlsberg Danmark, Carlsberg Supply Company
Danmark and various other Danish subsidiaries,
and is jointly and severally liable for payment
of VAT and excise duties.
Carlsberg A/S is party to certain lawsuits,
disputes etc. of various scopes. In
management’s opinion, apart from items
recognised in the statement of financial
position or disclosed in the financial statements,
the outcome of these lawsuits, disputes etc. will
not have a material negative effect on the
Company’s financial position.
REPORTS
MANAGEMENT
STATEMENT
CARLSBERG GROUP ANNUAL REPORT 2023 REPORTS
143
The Supervisory Board and the Executive
Board have today discussed and approved the
Annual Report of the Carlsberg Group and the
Parent Company for 2023.
The Annual Report has been prepared in
accordance with IFRS Accounting Standards as
adopted by the EU, further requirements in the
Danish Financial Statements Act and Article 8
of Regulation (EU) 2020/852 (EU Taxonomy
Regulation).
In our opinion, the consolidated financial
statements and the Parent Company’s
financial statements give a true and fair view
of the Carlsberg Group’s and the Parent
Company’s assets, liabilities and financial
position at 31 December 2023 and of the
results of the Carlsberg Group’s and the Parent
Company’s operations and cash flows for the
financial year 2023.
Further, in our opinion the Management review
includes a fair review of the development in
the Carlsberg Group’s and the Parent
Company’s operations and financial matters,
of the result for the year, and of the Carlsberg
Group’s and the Parent Company’s financial
position, as well as describing the significant
risks and uncertainties affecting the Carlsberg
Group and the Parent Company.
In our opinion, the Annual Report of the
Carlsberg Group and the Parent Company for
the financial year 1 January to 31 December
2023, identified as Carlsberg-2023-12-31-en.zip,
has been prepared, in all material respects, in
compliance with the ESEF Regulation.
We recommend that the Annual General
Meeting approve the Annual Report.
Copenhagen, 7 February 2024
Executive Board of Carlsberg A/S
Jacob Aarup-Andersen
Group CEO
Ulrica Fearn
CFO
Supervisory Board of Carlsberg A/S
Henrik Poulsen
Chair
Mikael Aro
Lilian Fossum Biner
Eva Vilstrup Decker
Erik Lund
Majken Schultz
Deputy Chair
Magdi Batato
Richard Burrows
Punita Lal
Ivan Nielsen
Olayide Oladokun
Søren-Peter Fuchs Olesen
Tenna Skov Thorsted
REPORTS
INDEPENDENT
AUDITOR’S REPORTS
CARLSBERG GROUP ANNUAL REPORT 2023 REPORTS
144
What we have audited
The Consolidated Financial Statements and
Parent Company Financial Statements of
Carlsberg A/S for the financial year 1 January
to 31 December 2023 comprise income
statement and statement of comprehensive
income, statement of financial position,
statement of changes in equity, statement of
cash flows and notes, including material
accounting policy information for the Group as
well as for the Parent Company. Collectively
referred to as the “Financial Statements”.
TO THE SHAREHOLDERS OF
CARLSBERG A/S
REPORT ON THE AUDIT OF THE
FINANCIAL STATEMENTS
OUR OPINION
In our opinion, the Consolidated Financial
Statements and the Parent Company Financial
Statements (pp 59 - 127 and 129 - 143) give a
true and fair view of the Group’s and the Parent
Company’s financial position at 31 December
2023 and of the results of the Group’s and the
Parent Company’s operations and cash flows
for the financial year 1 January to 31 December
2023 in accordance with IFRS Accounting
Standards as adopted by the EU and further
requirements in the Danish Financial
Statements Act.
Our opinion is consistent with our Auditor’s
Long-form Report to the Audit Committee and
the Board of Directors.
BASIS FOR OPINION
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and
the additional requirements applicable in
Denmark. Our responsibilities under those
standards and requirements are further
described in the Auditor’s responsibilities for the
audit of the Financial Statements section of our
report.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide
a basis for our opinion.
Independence
We are independent of the Group in accordance
with the International Ethics Standards Board
for Accountants’ International Code of Ethics
for Professional Accountants (IESBA Code) and
the additional ethical requirements applicable in
Denmark. We have also fulfilled our other
ethical responsibilities in accordance with these
requirements and the IESBA Code.
To the best of our knowledge and belief,
prohibited non-audit services referred to in
Article 5(1) of Regulation (EU) No 537/2014
were not provided.
Appointment
We were first appointed auditors of Carlsberg
A/S on 30 March 2017 for the financial year
2017. We have been reappointed annually by
shareholder resolution for a total period of
uninterrupted engagement of seven years
including the financial year 2023.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our
professional judgement, were of most
significance in our audit of the Financial
Statements for 2023. These matters were
addressed in the context of our audit of the
Financial Statements as a whole, and in
forming our opinion thereon, and we do not
provide a separate opinion on these matters.
CARLSBERG GROUP ANNUAL REPORT 2023 REPORTS
145
Key audit matter
How our audit addressed the key audit matter
Key audit matter
How our audit addressed the key audit matter
Revenue recognition
Recoverability of the carrying amount of goodwill and brands
Our audit procedures included considering the appropriateness of the
revenue recognition accounting policies and assessing compliance with the
accounting standards.
We performed risk assessment procedures to obtain an understanding of
IT systems, business processes and relevant controls related to revenue
recognition. For the controls we assessed if these had been designed and
implemented in a way that effectively addresses the risk of material
misstatement.
We tested that selected controls considered relevant to our audit, including
that Management’s monitoring of controls, used to ensure the
completeness, accuracy and timing of revenue recognised, were performed
consistently throughout the year.
We discussed the judgements related to the recognition, and classification
of revenue with Management. Further, we performed substantive
procedures regarding invoicing, significant contracts, significant transaction
streams (including discounts), locally imposed duties and cut-off at year-
end in order to assess the accounting treatment and principles applied.
We applied data analysis in our testing of revenue transactions in order to
identify transactions outside the ordinary transaction flow, including
journal entry testing.
Recognition of revenue is complex
due to the variety of different
revenue streams, ranging from
sales of goods, royalty income and
sales of by-products recognised
when all significant risks and
rewards have been transferred to
the customer or in terms of the
licence agreement.
Furthermore, the various discounts
and locally imposed duties and
fees in regard to revenue
recognition are complex and hold
an inherent risk to the revenue
recognition process.
We focused on this area, as there
is a risk of non-compliance with
accounting standards due to
complexity originating from
different customer behaviours,
structures, market conditions and
terms in the various countries.
Revenue recognition and
accounting treatment are
described in section 1.1
“Segmentation of operations –
Accounting estimates and
judgements” in the Consolidated
Financial Statements.
The principal risks are in relation to
Management’s assessment of the
future timing and amount of cash
flows that are used to project the
recoverability of the carrying
amount of goodwill and brands.
There are specific risks related to
macroeconomic conditions and
volatile earnings caused by volume
decline, intense competition and
changed regulations in key
markets – conditions that could
also result in Management
deciding to change brand strategy
to drive business performance.
Bearing in mind the generally
long-lived nature of the assets, the
significant assumptions are
Management’s view of prices,
volumes, discount rates, growth
rates, royalty rates, expected
useful life, costs, and future free
cash flows as well as the
judgement in defining cash-
generating units (CGUs).
We focused on this, as there is a
high level of subjectivity exercised
by Management in estimating
future cash flows and the models
used are complex.
The key assumptions and
accounting treatment are
described in section 2.2
“Impairment” in the Consolidated
Financial Statements.
Our audit procedures included performing risk assessment procedures to
obtain an understanding of IT systems, business processes and relevant
controls related to the assessment of the carrying amount of goodwill and
brands.
In addressing the risks, we walked through and tested that controls
relevant to our audit were performed consistently throughout the year.
We considered the appropriateness of Management’s defined groups of
CGUs within the business. We evaluated whether there were factors
requiring Management to change their definition. We examined the
methodology used by Management to assess the carrying amount of
goodwill and brands assigned to groups of CGUs, and the process for
identifying groups of CGUs that require impairment testing to determine
compliance with IFRS Accounting Standards.
We performed detailed testing for the assets where an impairment test
was required or indications of impairment were identified. For those assets,
we analysed the reasonableness of significant assumptions in relation to
the ongoing operation of the assets.
We corroborated estimates of future cash flows and challenged whether
they are reasonable and supported by the most recently approved
Management budgets, including expected future performance of the
groups of CGUs, and challenged whether these are appropriate in light of
future macroeconomic expectations in the markets.
We evaluated the assumptions used by Management, including
assessment of price and volume forecasts, discount rates and long-term
growth rates, and tested the mathematical accuracy of the relevant
models prepared by Management. We made use of our internal valuation
specialists in the audit. Further, we assessed the appropriateness of
disclosures, including sensitivity analyses prepared for the significant
assumptions.
CARLSBERG GROUP ANNUAL REPORT 2023 REPORTS
146
Key audit matter
How our audit addressed the key audit matter
Our audit procedures included performing risk assessment procedures to
obtain an understanding of the possible accounting impacts following the
decree.
We performed a comprehensive assessment of the likely impact of the
transfer of management of the business in Russia, including the
appropriateness of the criteria for deconsolidation of the Russian business
and presentation as discontinued operations. We involved internal
accounting and reporting specialists.
We made extensive inquiries of Group Management, Group Legal as well
as Group Accounting to ensure the completeness of the potential impact
of the loss of control.
We considered the appropriateness of the judgements made by
Management, including, but not limited to, the classification and valuation
of the title to the shares, reclassification of currency and translation and
hedging reserves and ownership of assets with legal title held in Russia.
We based our assessments of recognition, measurement, classification,
presentation and disclosure of income, expenses, assets, liabilities and
equity on the criteria set out by IFRS Accounting Standards.
We performed extensive substantive testing of conclusions made by
Management, including the relevant inputs, judgements and calculations,
and corroborated these with the conclusions made by our internal
accounting and reporting specialists.
Further, we assessed the appropriateness of presentation and disclosures,
including descriptions of significant judgements made by Management.
Discontinued operations
On 16 July 2023 the Russian
Government published the Russian
Federation's Presidential Decree
no. 520 of 16 July 2023 (“decree”),
whereby temporary management
of Carlsberg’s business in Russia
was transferred to the Federal
Agency for State Property
Management.
The principal risks relate to
Management’s assessment of loss
of control of the Russian business,
the presentation as discontinued
operations, valuation and
classification of the title to shares,
the completeness and accuracy of
the reclassification of currency
translation and hedging reserves
as well as other impacts of the
deconsolidation.
The accounting treatment of the
deconsolidation and the impacts
on the Consolidated Financial
Statements are based on a
combination of management
judgements, including various legal
implications, as well as objective
requirements, as mandated by
IFRS Accounting Standards.
We focused on this as the
accounting treatment is complex
and non-standard by nature, and
involves significant judgement to
be made by Management.
The accounting treatment is
described in section 5.1
“Discontinued operations” in the
Consolidated Financial Statements.
CARLSBERG GROUP ANNUAL REPORT 2023 REPORTS
147
STATEMENT ON MANAGEMENT’S REVIEW
Management is responsible for Management’s
Review, pages 3-57.
Our opinion on the Financial Statements does
not cover Management’s Review, and we do
not express any form of assurance conclusion
thereon.
In connection with our audit of the Financial
Statements, our responsibility is to read
Management’s Review and, in doing so,
consider whether Management’s Review is
materially inconsistent with the Financial
Statements or our knowledge obtained in the
audit, or otherwise appears to be materially
misstated.
Moreover, we considered whether
Management’s Review includes the disclosures
required by the Danish Financial Statements
Act and Article 8 of Regulation (EU) 2020/852
(EU Taxonomy Regulation).
Based on the work we have performed, in our
view, Management’s Review is in accordance
with the Consolidated Financial Statements and
the Parent Company Financial Statements and
has been prepared in accordance with the
requirements of the Danish Financial
Statements Act and the disclosure requirements
of Article 8 of Regulation (EU) 2020/852 (EU
Taxonomy Regulation). We did not identify any
material misstatement in Management’s
Review.
MANAGEMENT’S RESPONSIBILITIES FOR THE
FINANCIAL STATEMENTS
Management is responsible for the preparation
of consolidated financial statements and parent
company financial statements that give a true
and fair view in accordance with IFRS
Accounting Standards as adopted by the EU
and further requirements in the Danish
Financial Statements Act, and for such internal
control as Management determines is
necessary to enable the preparation of financial
statements that are free from material
misstatement, whether due to fraud or error.
In preparing the Financial Statements,
Management is responsible for assessing the
Group’s and the Parent Company’s ability to
continue as a going concern, disclosing, as
applicable, matters related to going concern
and using the going concern basis of
accounting unless Management either intends
to liquidate the Group or the Parent Company
or to cease operations, or has no realistic
alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT
OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable
assurance about whether the Financial
Statements as a whole are free from material
misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs and
the additional requirements applicable in
Denmark will always detect a material
misstatement when it exists. Misstatements can
arise from fraud or error and are
considered material if, individually or in the
aggregate, they could reasonably be expected
to influence the economic decisions of users
taken on the basis of these Financial
Statements.
As part of an audit in accordance with ISAs and
the additional requirements applicable in
Denmark, we exercise professional judgement
and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material
misstatement of the Financial Statements,
whether due to fraud or error, design and
perform audit procedures responsive to those
risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a
material misstatement resulting from fraud is
higher than for one resulting from error, as
fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of
the Group’s and the Parent Company’s
internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by Management.
• Conclude on the appropriateness of
Management’s use of the going concern basis
of accounting and based on the audit
evidence obtained, whether a material
uncertainty exists related to events or
conditions that may cast significant doubt on
the Group’s and the Parent Company’s ability
to continue as a going concern. If we conclude
that a material uncertainty exists, we are
required to draw attention in our auditor’s
report to the related disclosures in the
Financial Statements or, if such disclosures
are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence
obtained up to the date of our auditor’s
report. However, future events or conditions
may cause the Group or the Parent Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure
and content of the Financial Statements,
including the disclosures, and whether the
Financial Statements represent the underlying
transactions and events in a manner that
gives a true and fair view.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the
entities or business activities within the Group
to express an opinion on the Consolidated
Financial Statements. We are responsible for
the direction, supervision and performance of
the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit and
significant audit findings, including any
significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance
with a statement that we have complied with
relevant ethical requirements regarding
independence, and to communicate with them
all relationships and other matters that may
reasonably be thought to bear on our
independence and, where applicable, actions
taken to eliminate threats or safeguards
applied.
From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the
audit of the Financial Statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor’s
report unless law or regulation precludes public
disclosure about the matter.
REPORT ON COMPLIANCE WITH
THE ESEF REGULATION
As part of our audit of the Financial Statements
we performed procedures to express an opinion
on whether the annual report of Carlsberg A/S
for the financial year 1 January to 31 December
2023 with the filename Carlsberg-2023-12-31-
en.zip is prepared, in all material respects, in
compliance with the Commission Delegated
Regulation (EU) 2019/815 on the European
Single Electronic Format (ESEF Regulation)
which includes requirements related to the
preparation of the annual report in XHTML
format and iXBRL tagging of the Consolidated
Financial Statements including notes.
Management is responsible for preparing an
annual report that complies with the ESEF
Regulation. This responsibility includes:
• The preparing of the annual report in XHTML
format;
• The selection and application of appropriate
iXBRL tags, including extensions to the ESEF
taxonomy and the anchoring thereof to
elements in the taxonomy, for all financial
information required to be tagged using
judgement where necessary;
CARLSBERG GROUP ANNUAL REPORT 2023 REPORTS
148
• Ensuring consistency between iXBRL tagged
data and the Consolidated Financial
Statements presented in human-readable
format; and
• For such internal control as Management
determines necessary to enable the
preparation of an annual report that is
compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable
assurance on whether the annual report is
prepared, in all material respects, in compliance
with the ESEF Regulation based on the
evidence we have obtained, and to issue a
report that includes our opinion. The nature,
timing and extent of procedures selected
depend on the auditor’s judgement, including
the assessment of the risks of material
departures from the requirements set out in the
ESEF Regulation, whether due to fraud or error.
The procedures include:
• Testing whether the annual report is prepared
in XHTML format;
• Obtaining an understanding of the company’s
iXBRL tagging process and of internal control
over the tagging process;
• Evaluating the completeness of the iXBRL
tagging of the Consolidated Financial
Statements including notes;
• Evaluating the appropriateness of the
company’s use of iXBRL elements selected
from the ESEF taxonomy and the creation of
extension elements where no suitable element
in the ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension
elements to elements in the ESEF taxonomy;
and
• Reconciling the iXBRL tagged data with the
audited Consolidated Financial Statements.
In our opinion, the annual report of Carlsberg
A/S for the financial year 1 January to 31
December 2023 with the file name
Carlsberg-2023-12-31-en.zip is prepared, in all
material respects, in compliance with the ESEF
Regulation.
Hellerup, 7 February 2024
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 3377 1231
Mogens Nørgaard Mogensen
State Authorised Public Accountant
mne21404
Michael Groth Hansen
State Authorised Public Accountant
mne33228
CARLSBERG GROUP ANNUAL REPORT 2023 REPORTS
149
Carlsberg A/S
1 J.C. Jacobsens Gade
1799 Copenhagen V
Denmark
Phone +45 3327 3300
www.carlsberggroup.com
CVR No. 61056416
Proofreading: Borella projects